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(Page 3) MINE ID # OR PROSPECTING ID # M-80-228 INSPECTION DATE 1-6-98 INSPECTOR'S INITIALS SSS OBSERVATIONS This inspection was conducted to evaluate the Triangle One site for adequate financial warranty. This evaluation was a result of the recently approved succession of operator from Durango Construction, Inc. to Staker Paving and Construction Company, Inc. dba Durango Construction Company. The site was covered with approximately four inches of snow. Construction was taking place to install a crusher facility. Permanent concrete footers and pad had been poured and additional concrete structures were being formed up. One piece of the crusher had been installed. The concrete is located in an area where reclamation could take place by backfilling over the concrete with four feet of material before revegetating the site. Reclamation costs for this task were included in the January 7, 1998 revised reclamation cost estimate. The current permit does allow crushing with a portable crusher. The permanent crusher structure currently being built has not been incorporated into the permit, nor has the concrete batching facility which the operator indicated would be built on site. The concrete facility is proposed to process gravel from several gravel pits and is therefore designated as a custom facility and does not need to be permitted by this division. The operator has two options to bring this operation into compliance regarding this matter. The area proposed to be utilized by this custom concrete facility and its support areas must be removed from this permit through a post-mining land use change and subsequent request for release from reclamation responsibility for this portion of the permit area, or the operator must submit a request for amendment to the permit to change the post-mining land use to industrial use, and incorporate plans for the processing facilities into the permit. An application for either of these remedial actions must be submitted by January 30, 1998. Backfilling and grading has been conducted on the northwest pit highwall and the southwest highwall. These two areas have been sloped to a grade of 3:1 or less. This work has been reflected in the January 7, 1998 revised reclamation cost estimate. The Division has not received documentation that either the powerline through the site was installed after the site was permitted, or that the power company is aware of conditions at the site and does not have a problem with the power poles being located so close to the excavated pit slopes. If the powerline was in place at the time of permitting, the operator needs to supply the Division with a notarized damage compensation agreement between the operator and the power company. If no agreement can be reached, the operator will need to provide an appropriate engineering demonstration which proves that current and proposed conditions at the site will not damage the powerline (Rule 6.3.12). This problem must be addressed by January 30, 1998. A mine identification sign was not noted at the entrance to the site. The operator will need to install a mine identification sign as required by Rule 3.1.12. This sign must be in place by January 30, 1998.