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(Page 2) MINE ID # OR PROSPECTING ID # M-1979-221 INSPECTION DATE 5/24/05 INSPECTOR'S INITIALS WHE OBSERVATIONS The inspection of the Ute Mine was conducted as part of the review process fora 112c application forthe South Ute Pit, File No. M-2004-077, which is located within the permit boundary for the Ute Mine. The application for the South Ute Pit was submitted by Sedalia Land Company. The application for the South Ute Pit describes the construction of anon-putrescible solid waste landfill. The applicant has secured the appropriate land use permit and Certificate of Designation through Douglas County and recommendation for approval from CDPHE for construction and operation of the landfill. Approximately 79% of the excavated materials will remain on site to support construction and closure of the landfill. Shortly after the inspection, the applicant submitted a request for exemption from reclamation permit requirements. On June 14, 2005, the Board approved the applicant's request for exemption from reclamation permit requirements based on the Board's policy, dated April 2004. The referenced policy provides that under most circumstances an activity is exempt from the definition of mining if the excavation of material is part of a project that is subject to government review and permitting; the approved government permits ensure a beneficial use of the site affected by the material extraction; and the intended off site use of the extracted material is clearly incidental to the project. The Ute Mine, Permit No. M-1979-221, is approved for 141.76 acres. DMG holds $39,000 financial warranty. Mining and reclamation activities appeared current forthe Ute Mine. Lands previously affected by Robinson Brick Company appeared limited to approximately 32 acres. The majority of the previously affected lands will be reclaimed by the landfill activities conducted by Sedalia Land Company in accordance with the permits and financial warranties approved through Douglas County and CDPHE. Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247-5469. I & E Contact Address NAME Greo Knell OPERATOR Robinson Brick Company STREET 1845 West Dartmouth Avenue CITY/STATE/ZIP Denver. CO 80110 cc: Harry Posey, DMG ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH)