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(Page 2) MINE ZD # OR PROSPECTING ID # M-2001-035 INSPECTION DATE 9/26/05 INSPECTOR'S INITIALS ESC This was an inspection of the Trout Creek Pit conducted by Erica Crosby of the Colorado Division of Minerals and Geology. Kayette Hutchison of ACA Products, Inc. was present during the inspection. The site is located 3 miles southeast of Buena Vista in Chaffee County, Colorado. The Trout Creek Pit is a 112 sand and gravel operation, permitted for 74 acres. The 112 permit was issued on September 19, 2001. The Division holds a reclamation bond in the amount of $23,150.00. The approved postmining land use is general agriculture. A mine identification sign was observed at the entrance to the site. Permit boundary markers were noted on site. Mining was not taking place during the inspection. The site is divided into two areas, the quarry (area A) which is approximately 25 acres in size and the low laying area (area B) designated to remove sand and gravel deposits from historic floods. Area B has been mined and reclaimed to an alfalfa field. The area is irrigated with sprinklers. The quarry area A consists of benches in 12 to 20 foot lifts. Drilling is done to blast the material. A stipulation was placed on the permit upon issuance regarding basting at the site and reads as follows: "ACA Products will prepare industry standard blast reports for each blast in the quarry and, copies will be submitted to the Division with each annual report. A maximum charge weight of 42 lbs. per delay will not be exceeded without Division approval. Nine millisecond delays will be used. The delay time will not be lessened without Division approval. Each blast in the quarry will be monitored at the dam. A seismograph will be placed on bedrock at the base of the dam. Blast frequency and peak particle velocity will be measured for each blast. Blast frequencies will be limited to no leas than 30 Hz. Peak particle velocity will not exceed 2 ips. The dam seismograph monitoring data will be kept by the operator and made available to the Division upon request." The annual report submitted on September 14, 2005 did not contain the blasting report as required in the stipulation above. The operator will need to submit the blast report for 2004/2005 on or before November 30, 2005. See page 3 for further detail. The operator should be reminded to submit blasting reports for future annual reports. I & 8 Contact Address ^ CE NAME John Hollenbeck ^ BL OPERATOR ACA Products ^ FS STREET PO Box 1887 ^ HW CITY/STATE/ZIP Buena Vista, CO 81211 ^ HMWMD (CH) ^ SE ^ WQCD (CH) cc: Carl Mount; DMG (via a-mail)