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(Page 2) MINE ID # OR PROSPECTING ID #: M-1991-104 INSPECTION DATE: 9-1-OS OBSERVATIONS INSPECTOR'S INITIALS GRM This inspection was conducted as part of the normal monitoring program established by the Colorado Division of Minerals and Geology. The Nicholas Pit is a 110c pit permitted by Gunnison County. Mr. Allen Moores, representative for Gunnison County accompanied the inspector on site. Mr. Joe Baxter, representative for Kirkland Construction also was present. Kirkland has a l l lc permit adjacent to the County pit and an issue of boundaries facilitated a meeting between the permitees and DMG staff. The Nicholas Pit sign was noted at the gate into the permit azea. The County amended the permit boundaries in 2002 to switch some land from the west side over to the east side to allow better utilization of the gravel deposits. As part of the amendment, the eastern boundaries were surveyed and pins put at key locations, but actual boundary markers were not set up. The lack of mazkers is not going to be noted as a problem at this time. Due to over extension of stockpiles by Kirkland, some pins are covered up at this time. Part of an agreement between all parties will rectify this issue at a later date with DMG staff assistance. Currently, small stockpiles of materials aze noted within the permit area. There is no excavation or support equipment noted on site at this time. The inspector did not note any mine related debris on site, but some ranch equipment and dead trees and branches were noted. Most of the pit perimeter is sloped to 3:1 or better, currently. No noxious weeds were noted within the County disturbance area. However, some Canadian thistle was noted in the Kirkland stockpile azea. The County has an aggressive weed control plan and regulazly sprays so this is not an issue at this time. The main issue for both this site and the Kirkland 111 permit is the placement of processed gravels by Kirkland on permitted ground of the County. Normal practice fora 111 project is to over crush materials to ensure enough aggregate for asphalt production. Approxiamtely 500 tons or more of gravels are within the southeast boundaries of the Nicholas Pit. Kirkland believed that the boundary was a fence line and placed the materials there based on this assumption. Maps for both permits cleazly show a buffer zone that was missed by Kirkland. Kirkland, Gunnison County and DMG staffhave worked out a comprise that will insure the area is reclaimed and the materials utilized. The inspector will address this issue by sepazate letter and is contingent upon the landowner's agreement. There aze no problems noted at this time for this permit. The County is in compliance with its permit and in fact is being gracious in helping find a solution to the issue of the stockpiles. Responses to this inspection report should be directed to Russ Means at the Division of Minerals and Geology, Grand Junction Field Office, 101 South 3`d Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. I & E Contact Address cc: ^ CE NAME: Allen Moores ^ BL OPERATOR: Gunnison Countv ^ FS STREET: 811 Rio Grande ^ HW CITY/STATE/ZIP: Gunnison CO 81230 ^ HMWMD (CH) ^ WOCD (CH) ^ OTHER