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(Page 2) MINE ID # OR PROSPECTING ID # M-1997-065 INSPECTION DATE 11/01/06 INSPECTOR'S INITIALS ESC This was an inspection of the Brownstone Quarry conducted by Erica Crosby of the Colorado Division of Reclamation, Mining and Safety. Jim Striggow, Justin Hamilton and Michael Bekkedahl of Stone Wholesale Corporation were present during the inspection. An 110c Mining and Reclamation Permit was issued to Stone Wholesale Corporation on October 22, 1987 for a total permit area of 9.9 acres. The site is located approximately 5 miles north of Laporte in Larimer County, Colorado. The Division holds a financial warranty in the amount of $5,000.00. A mine identification sign was posted at the entrance to the site. Permit boundaries were marked and noted during the inspection. The Bite is actively being mined on the northern end of the permit area and is approximately 6-7 acres in size. The southern portion of the site has not been affected to date. The operator is currently mining two layers of sandstone noted as the upper Buff and the lower Cherokee. The average pit depth is approximately 30 feet and the pit floor slopes towards the south. The reclamation plan states that the pit will be filled with waste rock to a level grade. Zn addition, the operator commits to salvaging fines and replacing them over the rubble before replacing topsoil to a depth of 1 inch. The area will be revegetated with a seed mixture recommended by the Soil Conservation Service. The approved mine plan states that the approximate size of the pit where atone is extracted should not exceed 200' * 400'. In addition, the anticipated depth to the buff sandstone was to be approximately 12 feet. Because a lower formation is also being mined, the pit depth ranges up to 30 feet in some areas. The $5,000.00 bond does not appear to be adequate at this time to conduct reclamation in accordance with the approved plan. Therefore, the Division will reevaluate the amount of required bond. Notice of any increase will be sent under separate cover. Product piles in the form of rock pallets were stored in an area outside of the approved permit area. According to Rule 1.1(3) of the Construction Materials Rules and Regulations, affected land includes areas where "_.work, parking, storage and areas in which structures, facilities, equipment machines and other tools are situated." The operator will need to move all pallets and mining related equipment inside the approved permit area on or before December 29, 2006. See page 3 for corrective action due dates. I & 8 Contact Address ^ CE NAME Mr. Jim Striggow ^ EL OPERATOR Stone Wholesale Corporation 0 FS STREET 9720 US Hwy 287 ^ HW CITY/STATE/ZIP Laporte, CO 80535 ^ HMWMD (CH) ^ SE ^ WQCD (CH) Cc: Carl Mount; DRMS