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(Page 2) MINE ID # OR PROSPECTING ID # M-1986-104 INSPECTION DATE 8-1-02 INSPECTOR'S INITIALS GRM OBSERVATIONS This inspection was conducted as part of the normal monitoring program of the Colorado Division of Minerals and Geology. The Montgomery Pit is a 112c permitted site with 46.08 acres. Most of the site has been impacted by the operation. The inspector was accompanied on site by operator's Jason Burkey. The inspector and operator's representative looked at historical photos of the site taken when Old Castle SW took over the operation. The site was overflowing with junk equipment and fuel storage tanks. Past inspections raised issues with the tanks, secondary containment, asphalt plants and bonding. Most of the storage tanks noted from previous inspections have removed. The asphalt plants are gone with the exception of one storage bin tower which has been sold and will be moved soon. Anew fueling station is in place which has secondary containment designed into the tank. A berm along the northern edge of the permitted area is further protection for the Eagle River. Piles of scrap metal are located around the site and are being sold as clean up efforts continue. Some oil staining was noted but is not at this time considered a problem as it is part of the clean up efforts and appear to be being dealt with. B&B /Old Castle is to be commended for their efforts so far to clean up a very ugly site. The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. A sign is located at the entrance. Boundary markers include fence lines and berms that are easily identifiable. Some irrigation water historically has passed through the site. The water is being channeled away from the primary disturbance to prevent sedimentation. Other run-off areas have silt fencing in place that are in good repair and adequate. No major erosional features were noted. All roads are adequately maintained. Noxious and/or problematic weed infestation was observed within the affected area (Canadian Thistle). The infestation, if not controlled, will most likely hinder and/or delay successful reclamation of this site and contribute to off-site spreading and establishment of these weeds. A weed control plan developed in consultation with, and approved by, the appropriate local weed control authority must be submitted as a technical revision to this permit. Weed infestation is noted as a problem, with the corrective action(s) and correction date specified on the last page of this report. Significant progress toward control of on- site weeds must be demonstrated within three years to avoid potential Board action. A copy of this report will be sent to the appropriate weed control authority for this area. Re-sloping has begun on the south central and southwestern corner of the permitted site. It is to early to judge the final slope adequacy. It appears that fill material has been imported to the site for use as structural fill. DMG records do not indicate that the notice specified in Rule 3.1.5 (9) has been submitted for this backfill importation and placement. Please submit this notice by the correction date specified in the Problems section of this report. The bond has not been recalculated on this site since 1993. Therefore it is safe to assume that an increase is likely. A recalculation will be done within the next 30 days to assure that the bond is adequate for current conditions. No other issues were observed at this time. Responses to this inspection report should be directed to Russ Means at the Division of Minerals and Geology, Grand Junction Field Office, 101 South 3`" Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117, I & E Contact Address NAME Jason Burkey OPERATOR B&B Excavation /Old Castle STREET P.O. Box 1729 CITY/STATE2IP Edwards. Colorado 81632 cc: ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER