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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1997-rob <br />INSPECTION DATE: n6/,~7/n6 INSPECTOR=S INITIALS: TAS <br />OBSERVATIONS <br />1. A site inspection of the Carol Ann Pit was made as part of the Division's 4-year inspection program. Present during the <br />inspection were Tom Schreiner and Rick Wenzel of the Division and Jason Burkey of B & B Excavating. Digital <br />photographs of the site were taken and are attached to this report. <br />2. The Carol Ann Pit is an active pit with current disturbance in the west pit. The operator has completed mining as well <br />as backfill and grading requirements in the east pit. De-watering and dry mining methods are employed. Also, the <br />operator has done an exceptional job of water management at the site, particularly maintaining an unnamed natural <br />drainage in an undisturbed condition. At the west pit, this inspector estimated a 16-acre pit with 2400 linear feet of 0.5/1 <br />slopes at 20' high. This inspector finds the current disturbance to be in compliance with the approved mine and <br />reclamation plan. A reclamation cost estimate was prepared for this operation and determined to be $60,000. (See <br />attached reclamation cost estimate). The operator has provided a reclamation bond in the amount of $63,444 which is <br />adequate to reclaim the current disturbance. <br />3. This inspector notes that the adequacy of the existing bond is pending per the Division's July 18, 2006 request for the <br />Notarization of Operator's Acknow/edgement to be signed on the same date as the Operator's signature. Please see <br />attached July 18, 2006 correspondence from Elizabeth Shelton of the Division. <br />4. No problems were noted. Overall, this is a well managed, "clean" operation. Further, this inspector notes that the <br />operator has taken special measures to ensure minimization of visual impacts due to the highly visible location of the pit. <br />I & E Contact Address <br />NAME: Jason Burkev <br />OPERATOR: B & B Excavating~ <br />STREET: P.O.Bnx 1729 <br />CITY/STATE/ZIP: Fdward5, GO 8163? <br />cc: Carl Mount, DMG (via E-Mail) <br />Attachments <br />