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MINE ID # OR PROSPECTING ID #: M-2006-029 INSPECTION DATE: 05/09/2008 (Page 2) INSPECTOR'S INITIALS: RMW On March 22, 2006 Bill Clark of Grand County Department of Road and Bridge (GCRB) reported to the Division of Minerals and Geology (DMG) that Grand County had mined sand and gravel from a site designated as the South Fork Gravel Pit sometime in either 1998 or 1999 without a permit. On this same date, DMG received a Construction Materials Limited Impact (110) Operation Reclamation Permit Application for the South Fork Gravel Pit. The application was considered complete on April 25, 2006 and the adequacy review process began. As part of the adequacy review process, and because mining occur-ed on the site prior to obtaining a reclamation permit, a site inspection was performed by DMG personnel on May 9, 2006. Present at the inspection were Richard Wenzel from DMG and Bill Clark and Ken Haynes from GCRB. This report presents the results of the inspection. The South Fork Gravel Pit is located in the Northeast quarter of the Northwest quarter of Section 17, Township 3 South, Range 77 West of the 6's Principal Meridian in Grand County, Colorado. The proposed permit area lies entirely within the Arapahoe/Roosevelt National Forest. Access to the site is from Forest Service Road (FSR)142, which borders the site to the east. At the time of this inspection, no mining activity was taking place and no mining equipment was on site. No sign was posted at the entrance to the site identifying it as an active mine. Several large boulders placed across the road leading to the mine site restricted access to the mine site. Steel posts marked permit boundaries for the mine. Any trees that may have existed on the site have been removed. The majority of the topsoil has been stripped from the site and the several stockpiles of topsoil placed along the west side of the site. However, a moderate amount of vegetation consisting of grasses and young pine trees were observed growing on the area that has been cleared. Natural topography of the site slopes down to the northeast at a slope of approximately 12:1 (H:V). Topography of the mined area is relatively flat. Where the mined area transitions to the unmined area, the slopes are approximately four feet high with a slope of approximately 2:1 (H:V). Approximately 2.3 acres of the proposed 5.57 acres of material has been mined from the site beginning at the north end of the site and working south. No ground water appears to have encountered during mining operations and no erosion of the site was observed. The activities observed during this inspection are noted as Possible Violation (PV) No. 1 on page 3. The operator has disturbed approximately 5.57 acres by clearing trees, stripping topsoil, and mining approximately 2.3 acres of sand and gravel prior to obtaining a reclamation permit, which is a possible violation of C.R.S. 34-32.5-109(1) for failure to first obtain a reclamation permit prior to engaging in a new mining operation. The Division will schedule the PV item before the Mined Land Reclamation Board and, in addition, will send the operator a Reason to Believe letter outlining the Board dates and times of the hearing. The Division will recommend to the Board that the operator obtain a Construction Materials Limited Impact (110} Reclamation Permit if he has not already done so by the date of the Board hearing. Responses to this inspection report should be directed to Richard Wenzel atthe Division of Minerals and Geology, Denver Office, 1313 Sherman Street, Room 215, Denver, Colorado 80203, phone number 303-866-4935. Enforcement and Inspection Contact Address NAME: Bill Clark OPERATOR: Grand County STREET: 467 E. Tooaz Ave. CITYlSTATE/ZIP: Granbv, CO 80446 cc: U.S. Army Corps of Engineers U.S. Bureau of Land Management x U.S. Forest Service CO Department of Transportation CO Hazardous Materials and Waste Division CO State Engineers Office CO Water Quality Control Division x OTHER: Stevan L. O'Brian. Environment. Inc.