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(Page 2) MINE ID # OR PROSPECTING ID # M-77-436 INSPECTION DATE October 27, 1999 OBSERVATIONS INSPECTOR'S INITIALS TAS 1. A site inspection was made of the Tower Pit No. 1 located approximately 1.5 miles south of Brighton along Riverdale Road and immediately west of the South Platte River. The 112 permit for the Tower Pit No. 1 was transferred from D.H. Holding, Inc. to CAMAS Colorado, Inc. on'March 10, 1999. Representatives of CAMAS Colorado, Inc. (CCI) present during the inspection included Pat Ward, Mark Helm, Curtt Coppage, and Jamie Wilkins-Gaborio. The purpose of the inspection was to evaluate the water management system, existing pit conditions, and any outstanding permitting issues. 2. The Tower Pit is permitted for approximately 143 acres. Originally, the site was permitted for 354.5 acres which included disturbances both east and west of the South Platte River. As of September, 1990 all permitted acreage east of the South Platte River was released from further reclamation responsibility. The current financial warranty is $58,000. (This was the amount of financial warranty required by the Division in 1998 to reclaim mining disturbances existing at that time). Review of the permit file and mine plan indicates that the operation is approved for wet mining methods with no dewatering. The primary post-mining land use for the 143 acres is recreation. Two lakes will be developed consisting of 75 and 36 acres. A secondary post-mining land use is residential home sites. 3. The 31 acre pit previously mined by Dave Hammer of D.H. Holding has been allowed to fill up with groundwater. There is still evidence of significant erosion on the east slope of the pit. Mr. Ward indicated that CCI may complete reclamation of this pit within the next 12 months. This will require dewatering of the pit and shaping Pit slopes to the desired reclamation slopes. Mrs. Gaborio indicated that CCI has submitted a new application for a temporary substitute supply plan for the Tower Pit No. 1 in 1999. The application was submitted in conformance with requirements of the Office of the State Engineer to mitigate for evaporative loss of exposed groundwater. 4. A significant amount of non-roadable mining equipment present in 1998 has been removed. This inspector estimates that only 20~ of the equipment remains. With the exception of the non-roadable mining equipment, there did not appear to be any additional disturbances or additional reclamation work performed in the disturbed areas noted by the Division in 1998. 6. CCI has relocated the fuel tanks and Tube station to the west side of the water filled pit. The operator has established a liner beneath the Tube station trailer. The Division appreciates the diligence of the the operator in relocating these facilities to a more appropriate location. The Division also requests that the operator establish a berm or containment bunker for the fuel tanks that will be adequate to contain the volume of fuel present in the event of a leak or spill. 7. Active mining was taking place in the eastern portion of the Parcel E area at the time of inspection. Representatives of CCI estimated the disturbance to be 11 acres. The disturbance consisted of a rectangular shaped pit excavated down to bedrock and topsoil stockpiled to the west. Mr. Coppage verified that the permit boundaries had been identified and marked prior to mining disturbance in this area. The pit was being mined using dry mining and dewatering techniques. Mr. Ward indicated that CCI's preference is to use dry mining and dewatering techniques rather than wet mining techniques at the Tower Pit No. 1. Groundwater flows were being conveyed along [he western floor of the pit in a dewatering trench to a sump area, then collected and pumped to an approved discharge point. Mrs. Gaborio indicated that CCI has secured an NPDES water discharge permit with three (3) designated water discharge locations from the Water 4uality Control Division of the Colorado