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(Page 2) MINE ID # OR PROSPECTING ID # M-1991-136 INSPECTION DATE 1-29-04 INSPECTOR'S INITIALS GRM OBSERVATIONS This inspection was conducted as part of the normal monitoring program established by the Colorado Division of Minerals and Geology. The River Road Gravel Pit was last inspected in March of 2001. An amendment to the permit in August of 2001 changed the post mine land use to commercial /industrial and reduced the required reclamation bond. Brent Kerr, as United's representative, accompanied the inspector on site. The River Road Pit is United's main processing facility. Materials from other sites is brought in and either stockpiled or utilized in concrete /asphalt production. Most of the actual mining for the River Pit appears to be finished. The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. The sign is located at the entrance to the pit. Boundary mazkers include fence lines, t-posts and a berm along the south edge that borders the Colorado River. Pit edges have been re-sloped to approximately 3:1 slopes as required under the approved Reclamation Plan. The inspector noted riling and gulling particularly along the northern edge of the pit azea. The erosion issue is being noted as a problem with a corrective action and corrective date noted on the last page of this report. The erosion could be greatly alleviated if the operator would begin the revegetation efforts for the slopes. The inspector notes the site is to be used as the main processing facility for years to come. However, the establishment of vegetation on the slopes may take years and valuable topsoil may be lost. The operator should at least establish vegetation on the slopes to below the anticipated waterline of the final lake and regularly repair any erosion below that level. Storm and wastewater from the shop azea appear to be impacting the erosion issue. As part of the repairs, the operator may want to review the channeling of these waters to more controlled areas. United has an active weed management plan which includes this site. Some tamarisk was noted, which is being treated. The inspector did not observe any other problematic weeds due to the time of year and some snow cover. Overall, it appears that United is following the approved Mining Plan from Amendment 1 and no issues aze noted in that respect. The Reclamation Plan has the required slopes, but the operator has fallen a short on re-vegetation efforts at this and several other sites. The re-vegetation is not listed as a problem at this time, however the issue is beine noted for a proeress review durin¢ future inspections. The Division requests that the operator review re- vegetationrequirements at some of these older sites. Re-vegetation may make it possible to do some partial releases of areas and reduce overall financial warranty liability in the future. United has an approved secondary containment plan with the Division. The inspector noted that main fuel tanks were all of the type that has built in containment. At the batch plant located in the southeast corner of the pit some secondary containment and contamination issues were noted. First, a fueling area for diesel fuel was noted in a proper secondary structure, however fuel was noted as spilled outside of the containment area. (See Photo #3) Ten (10), 55-gallon barrels of oil were also noted in this area stored next to, but outside the established secondary containment feature. (see Photo #1) Also noted, was soil contamination from the barrels. More 55 gallon barrels with unknown contents were observed outside a storage building that had no secondary containment and just to the west were several 5 gallon buckets sitting on bare ground. (see Photo # 2) The improper storage of hazardous materials and waste is noted as a problem with corrective acrions and a correction date on the last page of this report.