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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2002-094 <br />INSPECTION DATE 5/31/07 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of the Division's review of a request to transfer the permit for Sky Ute <br />Sand & Gravel as successor Operator, and to update the cost of reclamation and associated amount of <br />financial warranty required for the operation. Ron Borden, Crusher Superintendent with Sky Ute Sand & <br />Gravel, participated in the inspection. Four photos and a reclamation cost estimation totaling $42,411 <br />accompany this report. <br />The Allen Pit is approved for conventional excavation and on-site processing, to include crushing, <br />screening and production of asphalt and concrete products. The permit area includes 51.5 acres with an <br />affected area boundary of 35.6 acres. Documents indicate that the site had a weed problem, including <br />White top and Russian knapweed, prior to the permit. Affected lands will be reclaimed to support <br />rangeland post-mining land use. The Division holds $5,000 financial warranty. <br />Mining activities have commenced in the northeast corner of the permit area. Topsoil had been stripped <br />from an approximate 10 acre area. Salvaged topsoil had been separated from other overburden and <br />stockpiled in a windrow configuration along the north and east permit boundary. Windrows of overburden <br />were located parallel to topsoil windrows, immediately adjacent to the pit and appropriately placed for <br />reclamation backfilling. Topsoil and overburden stockpiles have maintained a 50 foot buffer for the <br />Gurley Ditch, bordering the east permit boundary, and an approximate 50 foot bufferfor a fence line near <br />the north permit boundary. Stockpiles of processed materials were located within the areas where topsoil <br />had been previously salvaged. The pit area was approximately two acres in size and exhibited internal <br />drainage. Fuel storage tank was located within a spill containment structure. <br />A section of improvised culvert appeared to have inadvertently rolled into the Gurley Ditch. Ditch flow <br />appeared unimpeded by the misplaced culvert. However, the culvert appears to be property of the permit <br />holder and as such, needs to be removed from the Gurley Ditch and appropriately stored within the <br />permit area. <br />The Division has completed a preliminary reclamation cost estimation totaling $42,411. Please find <br />enclosed, fifteen (15) pages of summary, drawing, task sheets and data sheets utilized by the Division to <br />estimate the cost of reclamation. Therefore, should Sky Ute Sand & Gravel desire to complete the permit <br />transfer and become the permit holder, Sky Ute should submit $42,411 financial warranty. Otherwise, <br />pursuant to Rule 4.2.1(2), the existing Operator, Maverick Sand & Gravel, has sixty (60) days, due <br />August 18, 2007, to increase the financial warranty to an amount not less than $42,411. <br />I & E Contact Address cc: Tony Waldron, DMG <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Jim Stover <br />Maverick Sand & Gravel <br />2352 N. 7`" Street. Unit B <br />Grand Junction, CO 81501 <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />X Sky Ute Sand & Gravel, David King <br />