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(Page 2) MINE ID # OR PROSPECTING ID # M-1999-062 INSPECTION DATE 11/09/06 INSPECTOR'S INITIALS ESC This was an inspection of the Indio Red Quarry Number 1 & 2 conducted by Erica Crosby of the Colorado Division of Reclamation, Mining and Safety. Abe Vasquez and Vic Norris of Blue Mountain Stone were present during the inspection. The 110c Mining and Reclamation Permit was issued August 23, 1999 for a permiC area of 9.9 acres. The permit was amended in 2000 to swap approximately 0.8 acres of overlap with Permit No. M-1986-115. The Division holds a financial warranty in the amount of $2,500.00. The site is located 5 miles north of Lyons in Lorimer County, Colorado. Amine identification sign was posted at the entrance to the site. The permit area was delineated with boundary markers. The site is actively being mined during the inspection. The site is divided into two locations, Indio #1 and Indio #2. Indio #1 contains the active quarry with a highwalls that stair step down into the pit. The top highwall is approximately 5 feet high, the middle is 6' high and the lower is 10' high. This quarry is immediately north of the Boulder/Lorimer County line. Indio #2 is approximately 4 acres in size but only 2 acres have been affected. The quarry is actively being mined using hand tools. A portion of the highwall is currently being reclaimed. The niviaion currently holds a band in the amount of $2,500.00. This amount does not appear to be enough to reclaim the Bite as required in the approved reclamation plan. The Division will reevaluate the amount of required bond, and notify the operator of an increase under separate cover. i & 8 Contact Address ^ CE NAME Abe Vasquez ^ BL OPERATOR Hector Rodriquez [] FS STREET PO Box 122 ^ HW CITY/STATE/2IP Lyons, Colorado 80540 ^ HMWMD (CH) ^ SE ^ WQCD (CH) Cc: Carl Mount; DRMS