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(Page 3) MINE ID # OR PROSPECTING ID # M-1985-026 INSPECTION DATE 6/27/03 INSPECTOR'S INITIALS ESC The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. PROBLEMS/POSSIHLB VIOLATIONS AND CORRECTIVE ACTIONS DATE - - 1.-- -The-operator-intends on reelaimi~-Phase Il-as-one large lake- --pg-or PV:PB- and one small lake rather than three small lakes as approved in TOPIC (S):MP the AM-O1 reclamation plan. 9/1/2003 CORRECTIVE ACTION: Submit a revision to the permit outlining the new reclamation plan by September 1, 2003. A total of 4 open gravel pit lakes with approximately 20 acres PB or PV:PB of exposed surface is proposed under the existing reclamation TOPIC(S):HB plan. In the AM-O1 application, the operator stated that an 9/1/2003 approved augmentation plan through Colorado Water Court will be obtained after mining is complete. CORRECTIVE ACTION: The operator will need to submit a copy of an approved Substitute Supply Plan ("SSP") or Augmentation Plan issued by the Office of the State Engineer ("OSE") in order to demonstrate that the postmining land use of can be achieved. A copy of the approved plan demonstrating compliance with OSE must be submitted to the Division by September 1, 2003. The mine identification sign was not posted as required by Rule pg pr PV:PB 3.1.12 of the Construction Materials Rules and Regulations. TOPIC(S):SM CORRECTIVE ACTION: 9/1/2003 The operator will need to post the mine identification sign, and submit proof in the form of photographs by September 1, 2003.