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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1977-002HR <br />INSPECTION DATE 05/02/06 <br />INSPECTOR'S INITIALS ESC <br />This was an inspection of the Munroe Gypsum Quarry conducted by Erica Crosby of the Colorado <br />Division of Minerals & Geology. Rob Kisner of Pete Lien & Sona, Inc. was present during the <br />inspection. The Division holds a financial warranty in the amount of $34,800.00. <br />The purpose of the inspection was to inspect an area where the operator requested a surety <br />reduction on 4.7 acres of reclaimed land and reduce the bond to $18,279.00 (approximately <br />$3,515.00 per acre). Of the 240-acre permit area, only 9.9 is to be affected (and bonded) by <br />mining related activities. The release request was received by the Division on November 3, <br />2005. An inspection was delayed until the spring of 2006 due to adverse winter weather <br />conditions. Markers delineate the 4.7 acre reclaimed area. The area was graded and seeded in <br />2003. Slopes have been graded along the rim of the mine and are less than 3h:ly. <br />Approximately 2" of topsoil was available and respread. Vegetation is well established on <br />site, and no erosion features were noted. Rabbit brush from undisturbed areas was <br />encroaching in the reclaimed area. The operator sprays the site annually for noxious weeds. <br />The operator provided the Division with the seed mixture used on site, and is attached to <br />this inspection report for future reference. <br />The operator will need to provide the Division with a new map depicting the 4.7-acre area to <br />be released from the permit area. This is to avoid confusion at a later date regarding the <br />location of the area released. Once the map is received and approved by the Division, then <br />the acreage release request will be approved. However, since 15.15 acres is currently <br />disturbed, the surety reduction request will not be approved because the bond monies are <br />needed to reclaim other areas of the site. The Division's decision date for the acreage <br />reduction request is July, 1, 2006. A map must be provided prior to this date, or the <br />operator can extend the Division's decision date in the form of a written request. <br />I & B Contact Address <br />r <br />NAME Shelly Erickson j' <br />OPERATOR Pete Lien & Sons, Inc. r <br />STREET P.O. Box 440 j' <br />CITY/STATE/ZIP Rapid City, SD 57702 j' <br />r <br />r <br />CE <br />BL <br />FS <br />HW <br />HMWMD (CH) <br />SE <br />WQCD (CH) <br />cc: Carl Mount; DMG <br />Rob Kisner; Pete Lien & Sons, Inc <br />