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(Page 2) MINE ID # OR PROSPECTING ID #: M-1978-323 INSPECTION DATE: 8-22-06 INSPECTOR'S INITIALS GRM This inspection was conducted as part of the normal monitoring program established by the Colorado Division of Reclamation, Mining and Safety for permitted sites. The Woodring Pit is a 112c pit located north of State Road 330 near Molina, Colorado. Milton Derrick, consultant to Parkerson Construction accompanied the inspector on site. The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. The sign is clearly posted at the entrance to the mine site. Permit boundaries are marked by t-posts, fencing and natural features. The site is active with several large stockpiles of crushed materials being managed for feed to a portable asphalt plant. Trucks and loaders were observed coming and going through out the inspection. Roads are well maintained but dust from the heavy truck traffic could be observed from a fair distance away. Although, not within the jurisdiction ofthe Division, it is recommended that Parkerson Construction discuss dust management with the sub contractor on site. Stormwater management is primarily designed to contain run-on on site. The entrance road climbs a steep grade that has a bar ditch to the inside to prevent off site damage to the road below. The inspector did not note any noxious weeds on site. Annual non-noxious weeds are noted on topsoil piles as well as some volunteer grasses. Reclamation appears to have begun along the west and northwestern corner of the pit. Topsoil /overburden have been pushed in to cover the highwall. The inspector is unsure at this time if they are 2:1 as required, but work is also on going. Please be sure to verify slope angles prior to any reseeding efforts. As noted, a portable asphalt plant is currently working on site. The inspector has some issues with the housekeeping within the pit. As can be seen with the pictures provided with this report, there are multiple areas ofasphalt spillage and possible oil contamination to soil. Asphalt is considered inert after 60 days, however, it can release hydrocarbons into the soils if rained on or saturated in water prior to that. Asphalt reject is also not a desirable component for reclamation and when scattered about has a tendency to show up in undesirable places later on. The site should have 1 reject pile area. The inspector noted asphalt reject in numerous places with no real rhyme or reason to its location. Connector hoses for hot asphalt mix were observed shoved under trailers and allowed to drain onto bare soils as well as overflow from other parts of the plant. This is an unacceptable practice. Hoses should be stored in a manor to prevent excess spillage and reject should be confined to a central point for proper disposal after 60 days. The inspector is aware that spillage to some degree is inherent with the activity; however clean-up should be done immediately and not allowed to build up. Staffalso noted some 55-gallon barrels and 5-gallon pails that are not in secondary containment. The secondary containment is required for empty containers as well as full due to residues within the containers that can be released into the environment. The improper storage of hazardous materials and the housekeeping issues are noted at the end of this report as a problem. Please note the corrective action and corrective action date for compliance on this issue. The Financial Warranty was last reviewed in 2000. Staff will recalculate the bond using accepted tasks and volumes from the last update. Staffwill note establishmentofslopes as indicated in this reportalong the west and northwest pit edges.