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(Page 2) MINE ID # OR PROSPECTING ID #: ra-2nm-ngn INSPECTION DATE: nRitS/n~ INSPECTOR=S INITIALS: OBSERVATIONS 1. Apre-operation inspection was conducted of the proposed amendment area for the River Valley Resources site. Present during the inspection was John Rozelle of Lafarge West, Inc. 2. A mining and reclamation permit was recently issued to Lafarge West, Inc. for a total of 105.41 acres. Lafarge West, Inc. has submitted an application for a permit amendment to add 22.85 acres and increase the permitted acreage to 128.26 acres. There was no disturbance at the site at the time of inspection. All permanent man-made structures as noted on the Exhibit C -Mining Plan Map were verified. The only significant feature within the proposed amendment area is the Suttle Ditch. A notice of the proposed amendment was posted, as required by Rule 1.6.2(1)(b), at the south entrance to the property. 3. This inspector noted that the Suttle Ditch was dry. The ditch was estimated to be 18-24"deep and 12-48"wide. The Suttle Ditch occurs within the area proposed for excavation. The operator has proposed to relocate the ditch and maintain the function of the ditch for downstream water users. 4. This inspector noted that the potential for capture of the pit by the Yampa River, approximately 250-300 feet to the south, appears very low. The amendment area to be excavated and reclaimed to a groundwater fed lake is a floodplain at approximately the same elevation as the top of bank for the north bank of the Yampa River. This area is currently used for hay production and is flood irrigated during the spring. Any overbank or high flows from the Yampa River will likely occur as sheet flow across the amendment area with moderate to low velocities. Further, the north bank of the river is stable and well vegetated. The south bank of the river is unstable with near vertical, cut banks at approximately 3-4 feet height. The reach of the Yampa River near the amendment area is a straight reach with north and south banks and adjacent fkx~dplains at approximately the same elevation. 5. One objection has been received during the public comment period for the amendment application. The Division will make a recommended decision on the application on September 9, 2003 and will present such recommendation during a Formal Public Hearing scheduled for the September 23-24, 2003 Board Meeting. I & E Contact Address NAME: Mr. John W. Rozelle OPERATOR: Lafarge West Inc. STREET: 1400 W 64~h Ave„ PO Box 21588 CITY/STATE/ZIP: Denver, CO 80227-0588 cc: Carl Mount, DMG (via E-mail)