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MINE ID # OR PROSPECTING ID #: M-1998-019 INSPECTION DATE: 05122/06 (Page 2) INSPECTOR'S INITIALS: RMW OBSERVATIONS On April 18, 2006, the Division of Minerals and Geology (Division) received a written request from Lafarge West, Inc fora release of Performance and Financial Warranties forthe Parshall pit undertheirConstruction Material Special (111) Operation Reclamation Permit M-2005-024. This requestwas made because Grand Gravel converted permit M-1998-019 for the Grand Gravel Pit from a Limited Impact (110) Permit to a Regular (112) Permit to include the entire permit acreage under Lafarge's 111 permit, and assume reclamation responsibility for Lafarge's mining activities under Grand Gravel's 112 permit. Following the surety release inspection for the Parshall Pit, the remainder of the Grand Gravel Pit operated by Grand Gravel was inspected. Present at the inspection was Richard Wenzel of the Division and Richard Curry of Grand Gravel. This inspection report documents the findings of the inspection performed on the portion of the Grand Gravel Pit operated by Grand Gravel prior to Lafarge's request for release of reclamation responsibility. For results of the portion of the pit inspected for Lafarge's request for release of reclamation responsibility refer to the report for the Parshall Pit, Permit No. M-2005-024 dated May 22, 2006. The Grand Gravel Pit is located on the east side of Grand Courity Road (GCR) 2 approximately one mile northeast of the intersection of U. S. Highway 40 and GCR 2, and sits atop a ridge that runs parallel to GCR 2. A sign was posted at the entrance to the pit identifying the site as the Grand Gravel Pit, Permit No. M-1998-019. The permit boundaries for the pit were clearly marked by fences along the south and east sides of the site and steel posts along the north and west sides of the site. All mining activityihas occurred within the pit boundaries. No active mining was in progress at the time of this inspection. However, numerous pieces of mining equipment and other miscellaneous, non-mining equipment were observed in the pit, including three large, empty, cylindrical tanks. A diesel fuel storage tank was also observed in the pit. The tank appeared to have secondary containment at one time consisting of a plastic liner and a berm. However, the berm appears to have eroded away, essentially minimizing any secondary containment. The operator indicated however, that the tank was empty. Before the tank is used for fuel storage, adequate and properly sized secondary containment must be in place. A moderately vegetated topsoil berm was observed along the west side of the pit. It appeared to be stable. A large, unvegetated topsoil stockpile was observed at the south end of the existing pit. Several stockpiles of processed gravel were observed along the east and south sides of the pit. Highwalls were observed along the north, east, and west sides of the pit. They varied in height from approximately ten to twelve feet. A large pile of recycled asphalt was observed in the northeast corner of the pit. No ground water or significant erosion was observed in the pit. Based on the results of this inspection, the only problem noted was the unvegetated topsoil stockpile at the south end of the current mining operation. This problem and corrective actions are detailed on Page 3 of this report. Because Grand Gravel is assuming the reclamation responsibility for Lafarge's 111 permit under their 112 permit, a new bond calculation will be required. The results of the bond recalculation will be forthcoming under separate cover. Responses to this inspection report should be directed to Richard Wenzel at the Division of Minerals and Geology, Denver Office, 1313 Sherman Street, Room 215, Denver, Colorado 80203, phone number 303-866-4935. Enforcement and Inspection Contact Address NAME: OPERATOR: STREET: Richard Currv Grand Gravel P.O. Box 566 CITY/STATE/ZIP: Hotchkiss. CO 81419 cc: U.S. Army Corps of Engineers U.S. Bureau of Land Management U.S. Forest Service CO Department of Transportation CO Hazardous Materials and Waste Division CO State Engineers Office CO Water Quality Control Division OTHER: