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(Page 2) MINE ID # OR PROSPECTING ID # M-1994-108 INSPECTION DATE 7/22/05 INSPECTOR'S INITIALS RCO OBSERVATIONS This inspection was performed by the Division as part of its monitoring of Construction Materials 112c permits. The operator was contacted about the inspection, and arrived about 20 minutes after the inspection began. The site was active at the time of the inspection, including excavation, crushing, and hauling of material. Past excavation within the permit area boundary has occurred during this permit and prior to the issuance of this permit, and has left several areas of past excvation disturbance. At this time, all current excavation and processing is occurring in the northern end of the permit. Material is being removed to very near the eastern permit boundary, with a steep highwall, then backfilled with the available reject material to produce the final slope gradient. Topsoil is stockpiled nearthe slopes and can be replaced easily. This process will slowly move toward the south. The pit floor is fairly level, but an undumating shale layer will allow random deeper excavation. Pitrun is being crushed in the active north pit. Groundwater moving from the irrigated pastureland to the east of the permit is daylighting along the highwall, requiring a drainage trench to convey this water away from the highwall to an established wash pond. The operator stated that appropriate water rights exist for handling this groundwater. There is a new scale temporarily placed in the southern end of the pit for haul truck use, The old scale still is present, but is now used for the landowner's agricultural uses. The old scale and its access road will remain onsite for agricultural use after relamation. All fuel and hydrocarbons are stored in a lined facility. The operator is aware of the need for complete containment and will maintain this facility. Very little reclamation has occurred yet. As the north pit floor expands, there will be room to move some of the processing equipment and stockpiles to allow reclamation to commence and then proceed behind the mining. The debris, old equipment and parts that had been stored in the south part of the pit have nearly all been removed. There is stills small pile of old asphalt that is gradually being reduced as it is hauled offsite for road surtacing. The weeds at the site are under a weed control plan. All onsite drainage is contained in the wash ponds and/or controlled by the stormwater berms along the western shoulder of the pad. It is routed into a series of stilling basins before leaving the site. The bond has not been reviewed recently, and is again schedulked for recalculation. The new figures will be forwarded to the operator for review and comment. The operator is reminded to perform the weed control as required, and the revegetation seeding according to the approved reclamation plan. These activities should be included in the annual reports. No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no.970-247-5193. I & E Contact Address NAME Rick Noland OPERATOR Noland.lnc. STREET PO Box 330 CITY/STATE/ZIP Mancos, CO 81328 cc: Harry Posey, DMG p CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER