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MINE ID # OR PROSPECTING ID #: M-1991-074 INSPECTION DATE: 4/11/2006 (Page 2) INSPECTOR'S INITIALS: CMR, AJW This inspection was in response to a permit amendment submitted by the Operator (Kiowa County). The amendment is to increase the permit mine area from 24.6 acres to 35 acres. This inspection also was conducted as part of a normal monitoring inspection of the entire mine site. Chris Rowe and Toni Waldron of the Colorado Division of Minerals and Geology carried out the inspection. Mr. Rodney Hopkins from the Kiowa County was present as the Kiowa County representative. The mine site appeared, in general, to be in compliance with the permitted operation plan. Observations of note include: The affected area of the mine is reaching the full extent of the permitted area of 24.6 acres. The topsoil piles were not vegetated or have some other means of controlling soil erosion. Section 3.1.9 of the Minerals Rules and Regulations require that If such topsoil is not replaced on a backfill area within a time short enough to avoid deterioration of the topsoil, vegetative cover or other means shall be employed so that the topsoil is protected from erosion, remains free of any contamination by toxic or.acid-forming material, and is in a usable condition for reclamation. Please provide a plan to the Division by July 315`, 2006 that demonstrates how the County will protect topsoil stockpiles in conformance with Rule 3.1.0. Please provide a date for implementation of the topsoil stockpile protection plan. Some of the older mined areas were naturally re-vegetating. These older areas have not been regarded, had topsoil added, or been re-vegetated. As topsoil if removed from the amended mine area it might be practical to move that soil to the older mined out areas and complete the reclamation there (Sec. 3.1.10 Mineral Rules and Regulations). It was discussed with the Operator that in the amended mine area, mining could progress by pushing material into the pit, keeping a 3:1 grade as the mining progresses. This would be a change from the highwall type mining in the current mine area, and could save costs during reclamation. Additional comments on the operation and reclamation of the amended mine plan will be provided through an adequacy review of the permit amendment. Enforcement and Inspection Contact Address NAME: OPERATOR: STREET: CITY/STATE/ZIP: cc: Rodnev Hopkins Kiowa Countv P.O. Box 100 Eads. CO 81036 U.S. Army Corps of Engineers U.S. Bureau of Land Management U.S. Forest Service CO Department of Transportation CO Hazardous Materials and Waste Division CO State Engineers Office CO Water Quality Control Division OTHER: