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(Page 2) MINE ID q OR PROSPECTiNC ID M M-1978-327 INSPECTION DATE 06/06/06 INSPECTOR'S INITIALS ESC OB38RVATION9 This was an inspection of the Kauffman P[t conducted by Erica Crosby of the Colorado Division of Minerals 6 Geology. Frank Kauffman'of Jake Kauffman 6 Son, Inc. was present during the inspection. The Kauffman Pit is located approximately 1.5 miles southeast of Loveland in Latimer County, Colorado. The 112 Mining and Reclamation Permit was issued to Jake Xauffman S Son, Inc. on May l4, 1979 for a permit area of 58 acres. The permit was amended in 1989 to increase the permit area to 83 acres. On January 9, 2006 the operator submitted an acreage release request and a surety release request for the area incorporated into AM-01 of the Wagner/Kauffman Pit d3. The purpose of the inspection was to verify permit boundary markers that delineate [he original 58-acre permit area and the remaining area from the 1989 amendment. Under [he Amendment 01 Application IAM-O1) for the Wagner/Kauffman Pit k3, the operator increased the permit area by 55 acres to the south in order [o reclaim the Bite to a clay-lined reservoir used for future water storage. During the review of the acreage and surety reduction, there appeared [o be no map depicting the origlral 58-acre permit area. The only maps to be located In the Eile depict [he entire 105-acre site parcel. When the permit was amended in 1989 to include H3 acres to the east, the original permit area was not mentioned but assumed the area to be 105 acres. The operator provided the Division with a revised map depicting the original SB-acre permit area and the remaining 1989 amendment area Eor a total of 84.2 acres. Markers wec•c put in place that. define the new permit boundary of 84.2 acres. The area includes the two existing lakes that 'were mined when the permit was issued. Areas Chat are not included in the permit are the scale house, shops, process area, material stockpiles and roads that access other pile. These areas have not been included in the permit area because these facllitiee have served multiple permitted mining operations since the t970'a. The area is currently being used for industrial and commercial activities and is zoned as such by La rimer County. According to the reclamation report maps, ponds were reclaimed in the 1980'x. Mature Ruesian Olive trees dominate pond slopes. In addition to Ruesian Olives, [amariak lalso referred to as salt cedar) was also noted along the pond shorelines. The tamarisk on site appeared to be intermittent on the pond elopes and not very established at this point In time. Both Russian Olives and [amariak are considered noxious weeds. According to the Division's policy memo of January 19, 2005 iac[ached) if the e:te was reclaimed prior to January 19, 2005, then tamarlak and/or Ruesian Olives do not require eradication unless the area is the sole source for infestation on to adjacent properties that arc free of tamarisk and/or Russian olive trees. to this case the plants will need to be eradicated just as any ocher noxious weed would be required to be eradicated from reclaimed areas under these circumstances. It was not clear during the inspection if the alts is considered a source for Ruesian Olives that will need to be erad[cated. However, tamarlak appears not to be very well established, and will need to be eradicated in conformance with [he Division's policy. It does not appear that the operator has a weed control plan for the alts. The operator will need [o submit a weed management plan in the form of a technical revision for review and approval. See page 4 for corrective action due dates. Hased on the information provided by the ooerator, the Division will approve the acreage reduction request to 83.2 acres and the bond reduced to $84,440.00. Notice of approval will be oubmitted under separate cover.