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MINE ID # OR PROSPECTING ID#: M-1977-526 PAGE: 2 INSPECTION DATE: 8-23-2005 INSPECTOR'S INITIALS: ACS OBSERVATIONS This inspection was conducted as part of DMG review of Permit Amendment Application AM-O1 which is intended to expand the permit area to the south to include two new mining areas, and to allow for the reclamation alternative of hydrologically sealing the main north pits to create a water storage facility. A requirement of the amended permit is that a technical revision be approved and sufficient bond be posted prior to implementing construction of the water storage facility if this alternative is selected. The two new mining areas in the permit expansion are designated Expansion Area North and Expansion Area South. The terms of the amended permit require that a technical revision including bonding be approved before the Operator can enter and mine Expansion Area South. The existing permit area for the Worthing Pit was inspected first. The Urban Drainage and Flood Control District have stabilized the bank of the South Platte River adjacent to the pit. This bank is infested with knap weed; according to Ben Frei, UDFCD is responsible for weed control and revegetation of this bank. Mr. Frei further stated that dewatering of the main pits could be accomplished using a 400-gpm pump; this is because ground water recharge is greatly diminished by the slurry walled pit located across Brighton Road from the Worthing Pit. Based on this information DMG will adjust its estimated cost for pit dewatering used to determine the amount of required bond. The pit access road and gravel processing plant areas were inspected. It was noted that the required permit sign was posted at the pit entrance. It was observed that knap weed has infected the edges of the access road and the perimeter of trafficked areas. Weeds in these locations must be exterminated by spraying with herbicide because they are a source for seeds that can be spread by vehicles leaving the pit. Spraying in these areas must occur in the spring of 2006. The Adams County weed agent should be consulted for any further eradication recommendations. It was observed that the gravel processing plant consists of mostly portable, rubber-tired equipment. However, there is a concrete foundation measuring 12'x 20'x 8" thick under the central plant, and there are three 12'dia.x 8'long concrete culverts surrounding the grizzly to provide stabilization. DMG will include an estimated cost to rubblize and bury these structures in the amount of reclamation bond required. It was noted that the fuel farm located near the processing plant is the self-contained package plant type with integrated leak and spill collection. It was further noted that the Operator has constructed a substantial visual and noise berm along the property line between the pit property and the property owned by the Fountain of Health located just to the south. Mr. Frei expressed a willingness to enlarge this