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(Page 2) MINE ID # OR PROSPECTING ID #: M-1981-006 INSPECTION DATE: 9-25-07 INSPECTOR'S INITIALS GRM OBSERVATIONS This inspection was conducted as part of the normal program established by the Colorado Division of Reclamation, Mining and Safety permit release request ofpermitted sites. The West Rifle 112c pit is located in west Rifle just south of the rail road tracks off Highway 6. It is adjacent to and the reclamation is incorporated with the 111 c permit via one large lake. Gilbert Lee, representative for Central Aggregates accompanied the inspectors on site. The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. The only unclear markers and boundaries are those that span the lake which are not deemed a problem. The 112c permit was approved for 22 acres of the total disturbance. Anew map submitted on January 11, 2007 indicates a disturbance within the 112c permit area is currently approximately 14 of the 22 permitted acres. Approximately 9 acres of this area have been reclaimed for some time. The inspector noted current excavation in the northwest portion of the permit area. A loader was tramming pit run to a crusher / screener. Numerous stockpiles of various processed materials were observed as well. Under a Technical Revision the eastern portion of the permit area where the shop and office are located is now approved for mining. At this time no changes have been implemented towards that goal. A water augmentation plan or well permit has been an issue for a number of years. Central Aggregates submitted documentation of an approved well permit through the OSE in October of 2006. Revegetation along the eastern and southern shore was accomplished several years ago. The banks although weathered by waves where originally sloped to 3:1. An access road runs around the area on top of the bank slopes. The vegetation notes willows, cattails and native grasses. Due to the date that the reclamation was accomplished the area is exempt from tamarisk and Russian olive abatement measures. These invasive shrubs are well established and are equal to the off site follage. The inspector notes some knapweed and burdock in patches as well. Stormwater is kept on site via sloping. The buffer zone between the river and disturbance area was noted as undisturbed. Similar to the 111 c permit, the inspector notes a dock and houseboat structure located along the eastern shore of the lake. The operator should submit a Technical Revision to note the structures are to stay in place as part of the final reclamation plans. Once approved, the operator could then submit a partial release request for the 8.86 acres of the southern halfofthepermit. Thiswou]dleavearelativelysquare]0.58acresunderthepermitofcun•entdisturbance and the final phase. It would be highly advisable to spray the noxious weeds at least once more in the release area prior to submittal of the request. At this time there are no issues or problems noted other than the site does not meet the approved reclamation plans as previously noted.