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(Page 2) MINE ID # OR PROSPECTING ID # M-1980-224 INSPECTION DATE 10/31/06 INSPECTOR'S INITIALS RCO OBSERVATIONS This inspection was performed by the Division as part of its monitoring of Construction Materials 112c permits. The operator was contacted about the scheduled inspection. The operator's representative named on page one was present during the inspection. The site was active at the time of the inspection. No mining is presently occurring at the site, but the onsite plants process materials imported from other permitted sites, as well as waste asphalt and concrete materials that are recycled as part of the asphalt and concrete batching that is approved for the site. The bacth plants are built as permanent structures. There are other permanent structures onsite also: company offices, vehicle and equipment maintenance shops (some of it for gthe operator's construction and paving businesses) and a metal fabrication building (for making conveyors, etc.). There are many thousands of yards of various materials stockpiled at the site, including overburden and topsoil for use in reclamation. The site is well-organized and neat. The site is fairly level, and much of it is paved. Higher ground (an unmined hill) adjoins the south side of the permit. Runoff from the many acres of impermeable surface flows to drains installed in the site floor orto drainage control structures along the northern perimeter. Two multi-celled sediment settling structures are located on a lower level along the NE permit boundary, for catching runoff and wash water for reuse onsite. There are unpaved areas where limited amounts of runoff is routed, below the main level, where old equipment and parts are stored where the runoff containment berms could be built up a little higher. No evidence of an uncontrolled discharge was observed, but this is where a significant amount of sediment could originate in a large storm event. This is not a problem at this time, but the operator should monitor or maintain these areas. Reclamation could proceed, since there are several areas along the margins where no further mining will occur, and the highwalls or slopes do not meet the reclamation standard. Little revegetation has been performed either. Older slopes that exhibit volunteer vegetation such as grasses or shrubs may not need additional work done. Other areas containing predominantly kochia or Russian thistle will require weed control and seeding. Some of these tasks will take time and should be done sooner rather than later. Performing any of these tasks will help reduce the reclamation liability. The bond amount was recently increased and is considered to be adequate at this time. The bond amount is based on the current reclamation plan approved in the file. That plan includes the removal of the numerous permanent structures on the site, since the approved post-mining land use is not "commercial-industrial" If the operator believes that the site will continue to be used for commercial-industrial purposes, and the structures would therefore remain, the operator should file an Amendment with this office. As part of the Amendment, the operator would have to demonstrate city or county approval for that land use. If the Amendment approves the buildings and pavement to remain onsite, the bond would decrease dramatically. Please call if questions. No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of Reclamation, Mining and Safety, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no. 970- 247-5193. I & E Contact Address cc: Tony Waldron, DRMS NAME OPERATOR STREET CITY/STATE/ZIP Denise Gonzales Fremont Paving and Redi-Mix PO Box 841 Canon City, CO 81212-0841 ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER