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(Page 2) MINE ID # OR PROSPECTING ID # M-'r/-/tf~ INSPECTION DATE~p/[b? INSPECTOR'S INITIALS TA5 1. A site inspection of the Reclamation Pit No. 1 (Hazeltine Pit) was made to evaluate compliance with the mine plan, particularly in the western half of the permit area. Present during the inspection were Ben Frei and Steve O'Brian. 2. A portion of the west edge of the permit area known as the Bull Seep Slough was eroded away during a significant rainstorm event on May 5, 2001. Mr. Frei and Mr. O'Brian explained that the permit boundary for the Reclamation Pit No. 1 goes through the center of the eroded slough. It was evident that mining/excavation at the Reclamation Pit No. 1 near the slough area was being done in conformance with the mining plan. Any materials lost in the slough area were a result of erosion and not excavation by Al Frei & Sons, Inc. 3. Other portions of the west half of the permit area were also inspected. It was noted that mining has occurred within 400 feet of the South Platte River in the northwest corner of the permit area. Several observations are noted: a) the excavation was done in accordance with the approved setback distance as noted in Exhibit C - Mine Plan Map, b) the disturbed slopes have been finish graded to reclamation contours, and c) the outslope of the river bank (east bank of the S. Platte River) has been stabilized via a cooperative project with the Urban Drainage and Flood Control District. (The Mine Plan Map shows the permit boundary approximately 100-125 feet from the South Platte River and the limit of excavation to be approximately 200 feet from the South Platte River). 4. No problems were noted during the inspection. The existing financial warranty of $40,800 appears to be adequate to complete remaining reclamation responsibilities at the Hazeltine Pit. 5. There was noticeable erosion of the Slough embankment on east bank of the slough, within the permit area of the Reclamation Pit No. 1. This area is scheduled for stabilization by Mobile Premix Concrete, Inc, even though it is outside the permit area for the Howe Pit (M-78-052), The stabilization measures are being reviewed and approved by a multi-agency Bu11 Seep Task Force. I & E Contact Address ^ CE NAME Mr. Albert R. Frei ^ BL OPERATOR Albert Frei & Sons. Inc. ^ FS STREET 11521 Briohton Blvd. ^ HW CITY/STATE/ZIP Henderson CO 80640-9329 ^ HMWMD (CH) ^ SE cc: Carl Mount, DMG ^ WQCD (CH) Steve O'Brian Environment, Inc. 7985 Vance Drive, Suite 205A Arvada, CO 80003