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(Page 2) <br />MINE ID # OR PROSPECTING ID # h1-2004-063 <br />INSPECTION DATE 1/13/05 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS WHE <br />This inspection occurred as part of DMG's review process of an 112c application. The application <br />describes a permit area of 81.7 acres located in apinyon-juniper community with rocky outcrops and <br />shallow soils. Mining activities will affect 62.5 acres of the permit area. The phased mining plan <br />indicates conventional excavation with on site processing to include crushing, screening, washing and <br />production of concrete and asphalt products. Affected lands will be mined in 4 phases with <br />contemporaneous reclamation for each phase. Affected lands will be reclaimed to support rangeland <br />post-mining land use. Decision date for the application has been extended, by applicant request, to <br />February 11, 2005. <br />Soil conditions were muddy due to seasonal snowmelt. Snow cover, approximately 3-inch depth, existed <br />throughout the permit area. The permit area and location of permanent man-made structures appeared <br />consistent with the descriptions provided in the application. <br />The applicant has addressed the adequacy issues identified by DMG. On February 11, 2005, DMG <br />determined that the application satisfied the minimum requirements of C.R.S. 34-32.5-115(4) and <br />approved the permit. However, pursuant to Rule 4.1(2), the permit will not be issued until DMG receives <br />and approves the appropriately executed warranties. Pursuant to Rule 4.2.1(4), DMG has estimated the <br />cost of reclamation for the first year of operations at $26,676. Therefore, DMG requires a financial <br />warranty not less than $26,676. <br />Copy of DMG's reclamation cost estimation, totaling $26,676, is enclosed with this report. <br />No problems or possible violations were observed. <br />Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 <br />Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247-5469. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE2IP <br />Rov & Glenda Hocker <br />Hocker Construction. LLC <br />P.O. Box 627 <br />Ignacio. CO 81137 <br />cc; Harry Posey, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE ' <br />^ WOCD (CH) <br />X Southwest Land Services, K.Allen <br />