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(Page 21 MINE ID # OR PROSPECTING ID # M-2005-071 INSPECTION DATE 5-16-2007 INSPECTOR'S INITIALS SSS OBSERVATIONS This inspection was conducted in response to a verbal and written (email with pictures) notice from Mr. Greg Lazear indicating that the Benson Brothers are conducting ripping operations on the Benson Brothers Red Shale Pit. In a phone conversation with this inspector on 5-14-2007 Mr. Lazear indicated ripping was occurring at the site and he asked if the vibration monitoring study, as stipulated by the Mined Land Reclamation Board at the formal public hearing where this permit was approved, had been conducted. Mr. Lazear was informed that the vibration monitoring study had not yet been performed and that the Division of Reclamation Mining and Safety (DBMS) would look into it. Mr. Lazear followed up with the attached email with photos on 5-15-2007. The site was inspected on 5-16-2007 to determine if the conditions of the stipulation to the Board order had not been adhered to. The access road to the site was constructed with a culvert and fill across the intermittent drainage. The facilities and stockpile area pad were being constructed as was the road up to the proposed mine benches. The small drainage cutting through the facilities area has been piped and covered. The entrance to the pipe has been armored and a trash screen has been installed. The screen is nicely installed in a manner that will allow brush and other floating debris to ride up on the screen, leaving the entrance to the pipe unobstructed to the stormwater flows. The operator was instructed to add some energy dissipating rock to the pipe outlet area where the outflow drop could cause erosion. Benson Brothers indicated that no material has been trucked from the site as was stated by Mr. Lazear. They indicated the only trucks to and from the site included equipment transport and import of one load of armoring for the pipe inlet. The proposed location for the crusher is against the hill, below the proposed benches and the existing (now partially upgraded) two track road on the west end of the ridge just south of the facilities area Isee attached map). This area has been partially excavated by a dozer and then a track excavator dug a hole estimated at 4'W x 5'D x 6'H. Bensons indicated that this location required a bit more clearing and excavation in order to locate the crusher for operation. Above the proposed crusher site, the mine bench access road is being widened to allow for equipment to safely operate under MSHA requirements and to create a flat, safe loading bench for the crusher. A chute is being constructed from the upper bench area on this western ridge to aid in pushing the shale to the loading area. The majority of the ripping conducted so far appears to have taken place right where Mr. Lazear's pictures show the ripping in progress. This ripping of a primarily sandstone knob was reportedly done to allow for creation of the chute and create enough space for the loading bench and road with the required safety berms. The location of the ripping, on the top and north side of the west end of this ridge is partially separated from the ridge to the south, where the cliffs are located on the far (south) side, by a drainage. DRMS staff acknowledge that some ripping is necessary to prep the site and set up for commercial operations. The terrain and MSHA requirements make it necessary to widen the mine access road and create a loading bench for the crusher large enough to accommodate equipment and required safety berms. The stipulation wording also acknowledges this by requiring the vibration monitoring "at the commencement of commercial operations at the project site (following site preparation activities)..." However, staff also acknowledge that the vibration monitoring is to be conducted as soon as the site is prepped enough to allow for the monitoring. Therefore, the current activities are found to be necessary to prep the site for the vibration monitoring study, as the study is to monitor vibration of all aspects of the operation; i.e. ripping, excavation, loading, and crushing. Benson Brothers are cautioned to not fully open and establish the site, but to conduct the study when the site is minimally operational; meaning when just enough prep has been conducted to allow the required machinery to operate in a safe manner. The prep must be accomplished with the least amount of ripping and excavation of rock as is possible. Additional development of the site for efficiency, aesthetics, etc. will need to be conducted during and after the vibration monitoring study is completed. Responses to this inspection report should be directed to Steve Shuey at the Division of Reclamation, Mining and Safety, Grand Junction Field Office, 101 South 3r° Street, Room 301, Grand Junction, Colorado 81501, phone number 970- 243-6368.