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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-2003-037 <br />INSPECTION DATE: 6-19-06 <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Minerals and Geology. The Haldorson Pit is a 112c permitted site located northwest of Montrose, Colorado off <br />6200 Road. Mark Haldorson and Kevin Hunt represented Sky Ute Sand and Gravel for the inspection. A recent <br />Succession of Operator has transferred ownership to Sky Ute from Haldorson and Sons. <br />The mine identification sign was not correct and must be installed per the requirements of Rule 3.1.12 (1) that state: <br />The operator shall post a sign at the entrance to the mine site which shall be clearly visible from the access road and <br />specify the following; a) the name ofthe operator; b) indicate that a reclamation permit for the operation has been <br />issued by the Colorado Mined band Reclamation Board, and; c) the permit number. Please install a new sign that <br />reflects the change ofownership and succession of operator that recently occurred. This issue is not being noted as a <br />problem at this time, but will be reviewed for compliance during the next inspection. <br />The mine is active with excavation going on in Phase la and 2a. Surface disturbances include the remainder of <br />Phase A with stockpiles and a concrete batch plant set up in Phase 4a. A portable asphalt plant is set up in the <br />bottom of the pit area in 1 A. The Scale House is located just past the main entrance to the facility. <br />Sight berms have been constructed along the permit boundaries. Trees and shrubs have been planted and grass seed <br />will be planted in the fall. The operator plans on using QuickGuard as a nurse crop for the dry rangeland seed mix. <br />An irrigation system has been installed to augment vegetation success. <br />Fuel storage containers are in temporary secondary containment structures. The structures are earthen berms with a <br />plastic liner. Permanent tanks with built in secondary containment are on order and will replace those currently in <br />use. The only issue the inspector has is that batteries to run the electric pumps aze sitting on of berms or on bare <br />earth. They should be placed in some type of protective container to prevent accidental damage and or leaking. <br />This is not note as a problem as it is minor and the operator will be addressing the issue. <br />The Financial Warranty was evaluated with an amendment to the permit in 2004. The inspector will update the <br />bond based on the tasks agreed upon then with a side note. The concrete batch plant has a concrete pad and pylons <br />associated with it which were not part of those calculations. The Division will have to bond for the removal of the <br />concrete as part of the overall reclamation liability. Therefore, a Technical Revision will be needed to address the <br />details of the construction of the concrete batch plant. The operator needs to be awaze that any buildings, concrete <br />slabs, pillars or other features are considered items that must be accounted for in the bond. When contemplating <br />building such structures it would be advisable to contact the Division to ensure that a Technical Revision (TR) or <br />amendment is not required prior to construction. The construction of what the Division considers permanent <br />structure is considered a problem and is noted at the end of this report. Please submit a TR that gives the <br />construction details and dimensions so that staff may adjust the Financial Warranty Accordingly. <br />