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(Page 2) MINE ID # OR PROSPECTING ID # M-2006-072 INSPECTION DATE 12/05/06 INSPECTOR'S INITIALS ESC OBSERVATIONS This was a pre-operation inspection of the Schumacher Pit #3 conducted by Erica Crosby of the Colorado Division of Reclamation, Mining and Safety. Randy Schafer and Brent Orr were present during the inspection. The 112c application was received by the Division on September 22, 2006 for a total permit area of 31.7 acres. The proposed pit is approximately 15 miles north of Sterling in Logan County Colorado. The operation will provide material for construction of new wind generation facilities near the town of Peetz. Permanent man-made structures were noted adjacent to the site. In particular on the northeast side of the permit, structures owned by Horizon Pork LLC are within 200 feet of the affected area. The grain bin is approximately 110 feet and the building is approximately 150 feet. The operator will need to maintain a distance of 200 feet of all permanent man made structures until an agreement or engineering analysis to mine closer than 200 feet is received and approved by the Division. The area is currently used as rangeland and it is heavily grazed and surrounded by a number of existing wind turbines. The area will be mined in three phases to a depth of approximately 20 feet. The area will eventually be restored after mining to rangeland habitat. The pit is surrounded by two other pits, the Logan County Schumacher Gravel Pit on the southwest corner and the Neirhuser Gravel Pit on the southeast corner. The applicant proposes to daylight the pit into the Logan County Schumacher Gravel Pit. I & S Contact Address NAME OPERATOR STREET Mr. Jeff rev L. Schumacher 831 Park Street CITY/STATE/ZIP Sterling, CO 80751 ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WQCD (CH) Cc: Carl Mount; DRMS Randy Schafer