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(Page 2) MINE ID # OR PROSPECTING ID # M-1977-522 INSPECTION DATE 11/OB/OS INSPECTOR'S INITIALS ESC This was an inspection of the Herman Feit Sand & Gravel Mine conducted by Erica Crosby of the Colorado Division of Minerals and Geology. Al Lunbery of Star Ready Mix was present during the inspection. The purpose of the inspection was to determine the status of the site, and determine the amount of financial warranty to be posted. During a review of the permit system, it was noted that the site was incorrectly noted as a 110(2) permit rather than a 112c permit (a 110(2) permit is a Hard Rock operation leas than 10 acres in size and a 112c permit is a sand and gravel operation greater than 10 acres in size). The Herman Feit permit was issued on October 31, 1977 to the Goodell Brothers. The permit was transferred to River Valley Rock Inc. on January 12, 1990 and then to Star Ready Mix on October 20, 2005. During the transfer of the permit application from River Valley Rock, Inc. to Star Ready Mix, the Division determined that the bond should be increased from $14,000.00 to $134,753.00. Following the increase of the bond, the operator performed some reclamation to reduce the reclamation liability. On July 5, 2005 the operator requested that a follow-up inspection be conducted to document the reclamation performed. Backfilling and grading work was noted on the north and west sides of the pit. Slopes appear to be 3h:ly. A dozer was actively spreading topsoil on the backfilled areas during the inspection. The area has not been revegetated to date, but according to the operator will take place this fall. The south highwall will remain active, mining down in benches to a depth of approximately 30 feet. The pit will be drained to facilitate mining. The eastern portion of the pit has been mined and reclaimed, and vegetation is well established. A smaller pit towards the east has been reclaimed a number of years ago and vegetation is well established. Based on the reclamation performed this summer, the bond was recalculated to account for backfilling and grading the south highwall, and account for a portion of topsoil that has been respread. The revised bond totals $103,800.00. The bond estimate and required due dates for posting the additional bond will be sent under separate cover. At the mine entrance, a number of structures are present on site including a mine office and a concrete plant. Upon closer review of the file, the permit does not reflect these structures. The operator will need to revise the permit to reflect the structures noted on site. The operator will need to revise the mine plan to list the structures (including the composition and dimensions), locate the structures on the mine plan map, and discuss how the structures will be reclaimed to achieve the approved post mining land use. The operator should be aware that a cost to reclaim the structures will need to be added to the reclamation coat estimate. See page 3 for due dates. I & S Coatact Address NAME OPERATOR STREET CITY/STATE/ZIP ^ CE Al Lunbery ^ BL Star Ready Mix ^ FS 3800 0 Street Greeley, CO 80631 ^ HW ^ HMWMD (CH) ^ SE ^ WQCD (CH) cc: Carl Mount; DMG (via a-mail)