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(Page 2) MINE ID # OR PROSPECTING ID # M-1985-112 INSPECTION DATE 11/02/06 INSPECTOR'S INITIALS ESC This was an inspection of the Loloff Mine conducted by Erica Crosby of the Colorado Division of Reclamation, Mining and Safety. Mike Refer and Mike McMafee of Aggregate Industries-WCR, inc., and Nick Silbaugh and Don Loloff were present during the inspection. The Loloff Mine is located approximately 1 mile east of Greeley in weld County, Colorado. The purpose of the inspection was to review the site and the amount of financial warranty required as a result of the Transfer of Permit and Succession of Operations Application (SO- 03) from Aggregate Industries-WCR, Inc. to Loloff Construction, Inc. The approved permit area for the site is 55.2 acres in size. Mining has only taken place on the western portion of the site leaving a pit approximately 12.8 acres in size. The current operator (Aggregate Industries-WCR, Inc.) was actively grading the western highwall to 3h:ly before the site is transferred to Loloff Construction, Inc. Aggregate Industries will replace topsoil on the slope and revegetate the area above the anticipated high water elevation. The approved reclamation plan is for one large groundwater exposed lake approximately 36 acres in size. Don Loloff expressed a desire to change the reclamation plan to include a slurry wall around the perimeter of the site to restrict groundwater from flowing into the pit. The Division explained that such change to the reclamation plan is significant, and will require an amendment to the permit and an increase in the financial warranty. Such amendment and bond must be posted prior to the installation of a slurry wall or compacted clay liner. The Division currently holds a bond in the amount of $15,000.00. During the Division's inspection of 1/20/2000, the bond was increased to $58,200.00. Aggregate Industries provided staff a copy of the increased rider that was sent to the Division on March 1, 2000. A review of the file indicates that the rider did not get processed by staff at that time. The increased rider is now accurately reflected in the files. Based on the current disturbance, the Division finds that $58,200.00 is adequate to reclaim the site. Once the financial warranty is submitted and approved by the Division, the permit transfer to Loloff Construction, Inc. can be approved. I & E Contact Address ^ CE NAME Mike Refer ^ BL OPERATOR Aggregate Industries-WCR, Inc. ^ FS STREET 1707 Cole Blvd, Suite 100 ^ HW CITY/STATE/ZIP Golden, Colorado 80401 ^ HMWMD (CH) ^ SE ^ WQCD (CH) Cc: Carl Mount; DRMS Don Loloff; Loloff Construction Company