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(Page 2) ,;. MINE ID # OR PROSPECTING ID # M-1982-147 INSPECTION DATE 02/27/02 INSPECTOR'S INITIALS ESC OBSERVATIONS This was an inspection of the Nyholt/Mann Lake Pit, File No. M-1982-147 conducted by Erica Crosby of the Colorado Division of Minerals & Geology. The following individuals were present during the inspection: Duane Bollig, Denny Ellsworth, John 5tippich (Lafarge West, Inc.) Tera Meyer (Applegate Group, Inc.) Rick Anderson, Craig Tessmer & Kurt Carlson (Adams County) and Nancy Love (Love & Associates, Inc.). The inspection was in response to a citizen complaint letter submitted to the Division by Rick Anderson of Adams County on February 13, 2002. A follow-up letter was submitted to the Division via electronic transmission by Nancy Love of Love & Associates, Inc. on February 14, 2002. The letter submitted by Adams County states the operator has mined and reclaimed outside of the permitted mining boundaries, and requests that the Division conduct an inspection to determine if the operator is in violation of the approved permit. The second letter sent to the Division from Love & Associates contains 3 issues: First, the letter states that after reviewing the area of mining on a map, the operator my not be mining outside their permit boundary with exception of encroaching on the Branter Ditch at the southeast corner of the pit. They are to stay a minimum of 200-feet from the centerline of the ditch, and it appears that they have encroached within 175-feet of the ditch centerline. Second, the areas in Stage 1 and 2 will be reclaimed to an area much larger than the approved reclamation plan, particularly in Stage 2. Lastly, the operator may not mine a portion of Stage 2 due to the fact that that the powerlines will need to be relocated. The County does not believe this is an adequate excuse for not mining the parcel. The Division met with all parties noted above to discuss the concerns raised by the County. Adams County stated that they no longer believe that mining or reclamation has occurred outside the permit boundary. It was explained to the Division that the problem is in regard to mining limits in proximity to the Branter Ditch. According to the County, the operator was required to mine no closer than 200 feet to the centerline of the Branter Ditch, in accordance with the approved mine plan and County Special Use Permit/Contract. A compacted clay liner was then to be installed to a thickness of 35 feet, and then sloped to the required grade of 3h:1v. Rather, the County states that mining occurred within 175-feet of the Ditch, the compacted clay liner was placed and the area regraded to 3h:ly. The reason for this concern is the fact that 120`° Avenue will be realigned between the Branter Ditch and Pond 3 and eventually connecting to Harmony Road towards the north. The distance between the Branter Ditch and Pond 3 must be wide enough to facilitate the relocated road. The Division inspected the west edge of the southern pit (Pond 3) between the pit slopes and the Branter Ditch. According to the operator, the pit slopes in this area were mined in the year 2000 at 'fh:ly slope. Reclamation of the slopes occurred in the late summer of 2001. A compacted clay liner of 24 feet was placed at the edge of the mining limits. The slopes were then graded to 3h:ly. The County and the operator appear to be in disagreement regarding the required thickness of the compacted clay liner. The County states that according to their files, it should be placed to a thickness of 35 feet and the operator states to a thickness of 24 feet. The Division holds a reclamation bond for 100 installation of a compacted clay liner for all three ponds. According to the Division's guidelines titled, "Guide to Specification Prenaration for Slurry Walls and Clav Liners as a Component of a Colorado Mined Land Reclamation Permit (Sentember 2000)", no additional information on the thickness of the clay liner is required.