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(Page 2) MINE ID # OR PROSPECTING ID # M-2003-091 INSPECTION DATE 01/05/04 INSPECTOR'S INITIALS ESC OBS$RVATIONS This was a pre-operation inspection of the Duckworth Pit, File No. M-2003-091 conducted by Erica Crosby of the Colorado Division of Minerals ~ Geology. Eric Reckentine and Suzanne Janzen of Lafarge West, Inc. were present during the inspection. Lafarge West, Inc. filed a complete 112 Construction Materials Application with the Division on November 17, 2003. To date, one objection to the application has been filed by Bernard Lyons Gaddis & Kahn representing the Smith & Emmons Ditch Company. The decision due date is set for March 17, 2003, The mine site is located approximately 5.5 miles northwest of Frederick in Weld County, Colorado. Mineral Reserves, Inc, (a subsidiary of Lafarge NA) owns surface and subsurface rights of the affected land. The applicant intends to affect approximately 50 acres out of the 56.5-acre permit area. The site is divided into two mining phases separated by Idaho Creek. Lafarge plane to maintain a 60-foot mining off set distance on both sides of the creek. The proposed postmining land use is a combination of recreation and wildlife habitat. The open water created will consist of two unsealed ponds, approximately 30 and 14 acres in size. The remaining upland areas will be reclaimed to wildlife habitat. Structures on the proposed site and within 200' of the site were identified. The area immediately west of the permit area is a permitted mining operation under Aggregate Industries, WCR, Permit No. M-1994-027, Mining has not yet to occur at this site, but the Division has approved a mining and reclamation plan consisting of two large lakes sealed by a slurry wall. The pit is immediately adjacent to the western property line for the Duckworth pit. The operator will need to address how the Duckworth mining and reclamation plan will impact the adjacent Aggregate Industries site (in terms of relocation of the Smith and Emmons Ditch, impacts to the slurry wall and issues surrounding the 100 year floodplain). This will be addressed in the Division's adequacy letter. Lafarge proposes to mine through the Smith & Emmons Ditch. In order to mine through and relocate the ditch, a notarized letter of agreement from the owner of the structure must be obtained. The Lighthouse Ditch located immediately north of the operation was not included on the maps or described in the permit application. Lafarge will need to locate the ditch on the maps and demonstrate how the structure will be stable during mining and reclamation of the site. I & S Contact Address ^ CE NAME Eric Reckentine ^ BL OPERATOR Lafarge West, Inc ^ FS STREET 1400 W. 64th Ave. ^ HW CITY/STATE/ZIP Denver, Colorado 80221 ^ HMWMD (CH) ^ SE ^ WQCD (CH) cc: Carl Mount; DMG (via e-mail)