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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1983-209 <br />INSPECTION DATE: 11-09-06 <br />INSPECTOR'S INITIALS GRM <br />OBSERVATIONS <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining and Safety for permitted sites. The Benton Dawson Pit has recently changed operators under <br />SO-Ol. This inspection is to verify conditions at the site and to access whether the reclamation liability is covered <br />under by the current bond. Mr. Frank Gilmore accompanied the inspector on site. <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. <br />The sign is located at the entrance to the mine. Permit boundaries are defined by fencing and t-posts. <br />Currently no equipment is on site. However, it is evident that the site is active. The new operator has a sub- <br />contractor removing the final lift of aggregates and is beginning to shape the pit into its final configuration. <br />Materials from the floor and pit floor are being removed to flatten the bottom and create final slopes. <br />Reclamation has begun along the east and northern edges with final slopes established and topsoil material placed on <br />them. Seeding of these areas should be done as soon as possible to take advantage of recent moisture and to help <br />prevent any soil loss due to erosion. <br />The inspector discussed with Mr. Gilmore the final shaping of the southern slopes. The materials will be pulled <br />back from along the permit edge to gain the 3:1 slopes and improve the agricultural use of the site. Therefore, it is <br />understood that as long as no removal ofthe materials from the site is done, the reshaping has dual purpose and will <br />not be considered mining outside the permit boundaries. <br />The establishment of drainage for the site has been an on going issue. Mr. Gilmore and the sub-contractor intent to <br />reshape the pit floor and insta112 culverts to ensure all stormwater either stays on site or exits from the approved <br />discharge point. <br />Overall, the site is clean and well maintained. <br />The reclamation cost estimate was not recalculated as part of this inspection. The current estimate was recalculated <br />approximately three years ago and the operation is in compliance with the approved mine plan and reclamation plan. <br />Some reclamation of slopes and the pit are currently under way that would negate any inflationary increases. <br />Therefore, the current financial warranty is believed to be adequate to reclaim the site per the approved reclamation <br />plan. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South 3`a Street, Room 301, Grand Junction, Colorado 81501, phone no. <br />970-241-1117. <br />I & E Contact Address <br />NAME: Frank Gilmore <br />OPERATOR: same <br />STREET: 5998 Saw Mill Road <br />CITY/STATE/ZIP: Delta, CO 81416 <br />cc: <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />