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(Page 3) MINE ID # OR PROSPECTING ID # M-2002-094 INSPECTION DATE 5/31/07 INSPECTOR'S INITIALS WHE The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. PROBLEMSlPOSSIBLEVlOLATIONS AND CORRECTIVE ACTIONS CORRECTION DATE The Division has completed a preliminary reclamation cost estimation totaling $42,411. Please find enclosed, fifteen (15) pages of summary, drawing, task sheets and data sheets utilized by the Division to estimate the cost of reclamation. CORRECTIVE ACTION: Therefore, should Sky Ute Sand & Gravel desire to complete the permit transfer and become the permit holder, Sky Ute should submit $42,411 financial warranty. Otherwise, pursuant to Rule 4.2.1(2), the existing Operator, Maverick Sand & Gravel, has sixty (60) days, due August 18, 2007, to increase the financial warranty to an amount not less than $42,411. CERTIFICATE OF SERVICE I, Wallace H. Erickson, hereby certify that on this 19`h day of June 2007, I deposited a true copy of this inspection report with 4 photos and the CIRCES reclamation cost estimation, dated June 15, 2007, totaling $42,411, in the United States Mail, postage paid, addressed to the following: Jim Stover Maverick Sand & Gravel 2352 North 7`", Unit B Grand Junction, CO 81501 David A. King Sky Ute Sand & Gravel, LLC P.O. Box 350 Ignacio, CO 81137 u~ -` ,~- ~~~ ~4 ~\ U August 18. 2007 PB or PV: PB TOPIC(S): FW