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(Page 2) MINE ID # OR PROSPECTING ID # M-1977-446 INSPECTION DATE 3/29/04 INSPECTOR'S INITIALS RCO OBSERVATIONS This inspection was pertormed by the Division as part of its monitoring of Construction Materials 112c permits. The operator was contacted about scheduling a time for the inspection. The operator's representative named on page one was present during the inspection. The site was identified by the required permit ID sign posted where the access road begins at its turnoff from Hwy 151. (There is another permit ID sign posted where the older pit access road enters the permit area at its SE corner. This 2ntl sign contains the previous permittee's name; the sign should be updated, but it is not a problem.) The permit area is a square 40-acre parcel, with permit boundaries consisting of the eastern fenceline, southern fenceline, western fenceline, and survey pins atthe NW and NE corners. The permit area adjoins another permit area (M-1984-145, Ignacio Pit #2) which lies to the north. Pit has been active recently. Activities include topsoil and overburden stripping, gravel excavation, and stockpiling. Crushing has not occurred recently. Concrete hatching is carried out on adjoining permit. Casting of concrete cisterns and septic vaults is carried out in NW portion of the pit floor. Most mining and processing equipment used in this pit is stored and serviced in the adjoining permit, with minimal amounts of equipment, parts or debris in this permit. Stockpiled topsoil and overburden is located above the eastern highwall, some of the south highwall and along the west pit floor margin. Excavation has resulted in a level pit floor which daylights on the west. There will be no further expansion of the floor area, and limited mining along the east and south highwalls until the point for starting backfilling for reclamation is reached. Highwalls on the east and south are vertical and average about 30 feet high. Backfilling and cut and fill will be used to establishe the 3:1 gradient specified in the approved reclamation plan. There appears to be sufficient stockpiled material onsite to pertorm slope reduction, probably best carried out by scraper and dozer. Some of the pit slope along the south side has been reduced to 3:1, but not fully revegetated. There is a buried gas pipeline just within the east boundary which will be avoided during reclamation earthwork. The pit was dry at the time of the inspection. Most pit floor drainage appears to pool and percolate in. The drainage in the NW pit floor appears to exit the floor to the west. The drainage route is cobbly and there does not appear to be significant sediment transport, though this should be monitored. Pit runoff is carried to the unmined lower land to the west, within the permit where it disperses or percolates. The operator must ensure that runoff does not create erosional features or transport sediment offsite. If necessary, a series of small basins could be constructed with riprapped outlets. This may be found to be necessary as the surface is affected during reclamation. The south areas of the permit exhibit past infestation of Canada thistle. The operator has been actively treating these areas and there is much less live growth. Continued monitoring and treatment is needed, but the operator's past efforts have paid off and this office appreciates that. There is an area of a few acres in the west-central part of the pit which has not been mined, though it has been partially affected. The operator does not wish to excavate there, and it was agreed that the surface should be graded to conform with the 3:1 maximum gradient, then topsoiled and seeded according to the reclamation plan. The south highwall and slope, and the daylighted west edge of the floor, are each at least 100 feet inside the permit boundary, which allows adequate room for the operator to maneuver equipment or extend cut and fill activities needed for reclamation earthwork. The operator is also landowner of this permit and the adjoining one to the north, and stated that the reclamation grading of the low (10 ft ht) pit slope on the north may be extended beyond this permit boundary in order to create a slope as gentle as 10:1. This office feels it is acceptable to use areas outside this north boundary due to the ownership circumstances. The operator will be ready to begin significant reclamation in several areas of the permit during the next few seasons. The bond amount is presently $115,646, and is considered to be sufficient to pertorm all reclamation in the approved plan. Anyfinal reclamation pertormed should be reported by the operator on the annual reports. If the operator desires to reduce the required bond amount, a bond reduction request may be submitted (according to the steps described in Rule 4.13 and 4.16) and this office will recalculate the bond. No further items were observed during the inspection. No problems have been noted. Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no. 970-247-5193. Cont.