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MINE ID # OR PROSPECTING ID#: M-1977-348 PAGE: 2 INSPECTION DATE: 10-28-04 INSPECTOR'S INITIALS: ACS OBSERVATIONS Holcim intends to do full-scale reclamation of the quarries and spoil ridges during 2005. This inspection was conducted to review the areas to be reclaimed, and determine if any revisions to the permit are necessary for the reclamation project to proceed. When the permit was last amended in 1992 (permit amendment AM-O1), it had been anticipated that mining in the E and C bands would continue until 2070. However, the Fort Collins Cement Plant was closed in 2002 when Holcim decided to concentrate their Colorado operations at the Portland Plant. As a result, the northern portions of the E-band (the north part of E-4 and all of E-5) were not mined and operations in the C-band were primarily limited to excavation of weathered material. The mining and reclamation plans approved in amendment AM-O1 called for backfilling quarries E-1, E-2, E-3, and the southern half of E-4 with cement kiln dust (CKD) followed by capping with overburden from adjacent spoil piles, spreading topsoil, and revegetation. Since plant operations did not proceed to the point where CKD backfilling could occur in the E- band quarries, the reclamation that had been anticipated for these areas cannot be executed as planned. Moreover, reclamation for the A- band, as described in amendment AM-O1, anticipated that overburden from the C3 and C4 quarries would be cast into the A4 and A5 quarries and provide for partial backfilling of the cuts. As shown in photo #4 included with this report, backfilling of this type into the A-band has been very limited. For preparation of this report, a full review of the permit file was conducted. The following list provides information, pertinent to the on-going reclamation project, culled from the file review, and provides information on specific permit requirements relative to questions the Division of Minerals Geology (DMG) has received from Holcim. 1. Permit acreage of 1280 acres was listed in the amendment AM-O1 application submitted in October 1992. However, by a letter and revised maps submitted December 1992, portions of the silica sludge landfill located in quarry Al were excluded from the permit boundary. Unfortunately, the acreage subtracted by exclusion of portions of the silica sludge quarry was not called out in the submittal. As a result, the actual total permit acreage is unknown, but appears to be between 1270 and 1280 acres. Accurate maps of the permit boundary are included in the DMG files (see item 7 belowl; if it becomes necessary for whatever reason to determine the exact permit acreage, the maps could be planimetered for this purpose. 2. There are 871 acres covered by reclamation bonding within the 1280 acre overall permit area. The approximately 400 acres within the permit boundary that are not covered by the bond are either undisturbed or were disturbed pre-law. The approved maps