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(Page 2) MINE ID # OR PROSPECTING ID # M-1978-268 INSPECTION DATE 4/30/03 INSPECTOR'S INITIALS RCO This inspection was performed by the Division as part of its monitoring of Construction Materials 112c permits and as a pre- operation inspection of the area proposed to be added to the south side of the existing permit, under Amendment AM-01. The operator's representative was contacted about the inspection, and a time was arranged for the inspection. The operator's representative named on page one was present throughout the inspection. MONITORING OF EXISTING PERMITTED AREA The required permit ID sign was posted on the locked access gate at the southwest corner of the permit. Permit boundary markers were observed at all of the corners that were checked. The operation was not active at the time of the inspection. The only equipment onsite was a loader. There was no processing equipment and no fuel stored onsite. No noxious weeds or debris were observed. The operator mines the site from the top of the slope toward the bottom, creating final slopes as material is worked to the bottom for processing and stockpiling. Upper portions of the slope have been topsoiled and revegetated for several years. The pit does not expose groundwater or presently intercept any significant natural drainageways. The pit floor exhibits two small areas where stormwater runoff from the upper slopes has been retained. There is a some minor gullying occurring along the access road below the pit, but it does not appear to be caused by stormwater runoff from the pit itself. There was a seam of clay encountered in the mid to upper area being mined, which the operator was able to temporarily move aside. Some of the clay has been backfilled into the final slopes being created as mining progresses, but there are still two large piles of it which still need to be handled (hauled offsite or buried onsite). There is a large stockpile of crushed gravel at the pit floor. Stockpiled topsoil is stored near the entrance gate, to be placed on graded slopes for future reclamation. There is no disturbance in the northern gulch, below the dirt road, though the gulch is inside the permitted area boundary. The operator stated that no disturbances will occur there. The site appears to be operated according to the approved plan. PRE-OPERATION INSPECTION OF AMENDMENT AREA The existing permit area and the amendment area to be added are on land administered by BLM. As such, the operator is obliged to comply with any plan of operations that is approved by BLM, for the existing permitted area and for the area proposed under this amendment. As of the date of this report, BLM has not informed the operator or DMG of a decision on the proposed amendment. If BLM imposes operational or reclamation conditions which differ from those included in this DMG amendment, the amendment must be modified to conform to those from BLM. The area to be added adjoins the southern edge of the existing permitted area. As it is mined in phases,excavationtyill create slopes that blend to meet existing slopes in the present pit. The new area to be mined lies largely between two minor drainageways, though it actually includes one of the drainageways. The southern drainage gulch lies partly within the amendment area, but a setback of 50 feet will be maintained between disturbances and the bottom of the gulch. The two drainage gulches are dry and rocky. The existing slope surface in the new area is covered with rock and thin soil, and vegetated by pinyon, juniper, cactus, yucca, scattered grasses and shrubs. The operator stated that attempts to transplant smaller trees to reclaimed areas will be continued. Woody debris will have to be properly disposed of as it is incrementally cleared prior to mining. A sediment pond will be excavated south of the present pit entrance to intercept and retain stormwater runoff from the new pit area. If retention water percolates quickly into the ground, no engineered outlet will be required. If the water entering the pond during the future carries much sediment, the pond bottom may tend to become sealed or the pond capacity reduced. Monitoring and maintenance must be performed during the life of the pond and permit. It is not clear yet whether the pond will be removed at the time of reclamation. The proposed phases of the new area will be mined in much the same fashion as the existing mining plan, and appears to be feasible as presented. Additional items specific to the amendment application will be reviewed and commented on in separate correspondence. There were no additional items observed or discussed. No problems exist at this time. All responses or questions about this inspection report should be directed to this inspector at the Division's Durango Field Office: Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301; telephone 970/247-5193, or fax 970/247-5104.