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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1997-026 <br />INSPECTION DATE 03/05/03 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS GRM <br />This inspection was preformed as part of the normal periodic review of reclamation costs for permitted sites established by the <br />Colorado Division of Minerals and Geology. This inspection was to verify actual conditions that exist in comparison to the <br />approved Mining and Reclamation Plans. Due to an imaging project by the Division, maps and planswere not available during <br />the 8/1/02 regular monitoring inspection for this permit. Operator s representative Jason Burkey met the inspector on site. <br />A review of the Mining and Reclamation Plans indicate that the operator is following all approved measures. The only <br />exception is a stockpile of material in the northwestern area that is in the second phase for mining. This stockpile is not <br />considered an issue as it will have to be moved to begin mining and appears to be topsoil or overburden materials. <br />The approved Reclamation Plan calls for the reclamation of the first phase as mining begins in the second. Based on <br />observations it appears that the operator is moving in that direction. The recalculation of the bond for this site therefore will be <br />based on the worst case senerio outlined in the Reclamation Plan. <br />The eastern edge highwall of the permit boundary drops from south to north. The average height is around 20 feet, with 40 feet <br />being the proposed max to the south and daylighting to the north. The southern highwall appears to be approaching the <br />maximum of 40 in height. Lengths of the highwall were estimated off maximums depicted in the Mining Maps for the first <br />phase. <br />Topsoil piles were noted in various locations within the permitted area and appear to be sufficient for reclamation. <br />The scale house and power poles will be removed after mining is completed. Operator supplied estimates for their removal are <br />$2000.00 and this appears to be sufficient. The construction of an outlet ditch is also estimated by the operator to cost around <br />$800.00. this estimate also seems to be inline with current conditions. <br />No other issues were noted at this time. <br />Responses to this inspection report should be directed to Russ Means at the Division of Minerals and Geology, Grand Junction <br />Field Office, 101 South 3`d Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. <br />I & E Contact Address <br />NAME Jason Burkev <br />OPERATOR B&B Excavating <br />STREET P.O. Box 1729 <br />CITY/STATE/ZIP Edwards. Colorado 81632 <br />cc: <br />^ CE <br />p BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />