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(Page 2) MINE ID # OR PROSPECTING ID # M-2000-067 INSPECTION DATE 02/04/03 INSPECTOR'S INITIALS GRM OBSERVATIONS The Colorado Division of Minerals and Geology preformed this inspection as a precursor to enforcement action concerning the "Notice of Bond Cancellation" received. The permit holder, Mr. Art Beavers, accompanied the inspector on the inspection. The High Mesa Gravel Pit is located at the top of a lowland mesa approximately 2 miles east of Austin, Colorado and south of Highway 92. 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 permitted area. Boundary markers are t-posts and pins located at strategic permit points. There is a lack of boundary markers in areas not yet under disturbance, this is not considered an issue at this time. The operator will need to adequately mark the boundary markers as the mining progresses to the mesa edge to ensure no outside disturbance is created. Phase boundaries should also be installed to help facilitate keeping disturbance within approved areas. There is approximately 10 acres of total area that is disturbed. The areas of disturbance are in the area identified as the crusher pad site in Phase 1, product stockpile areas in Phase 1 and in Phase 4, and some topsoil /overburden stripped back in Phase 3. The Mining Plan submitted and approved by the Division calls for sequential mining in phases. The operator has not followed the approved plan. This issue is noted as a problem with the corrective action(s) and correction date specified on the last papa of this report. It should be noted that although the areas disturbed are in different Phases, the total area of disturbance is still under the operator's commitment of 13 acres at any one time. No noxious weeds were noted within the permitted or the surrounding area. Erosion control and storm water management have been installed, Pinned hay bales were observed along road drainages. Several storm water containment and diversion ditches were noted on site. Topsoil stockpiles do not have wind erosion protection. The operator is reminded that the approved permit and Rules call for seeding the stockpiles to prevent erosion. This is not being listed as an issue as some of the materials appear to have been in place less than 12 months. Steps to correct the lack of erosion protection for topsoil stockpiles should be addressed as soon as possible. This issue will be reviewed during the next inspection for compliance. There was a loader noted on site as the only equipment within the permitted area. No structures or other portable equipment were observed. No other issues were noted at this time. A general discussion with the operator about the bond cancellation was undertaken. The operator is working on obtaining the correct bond at the time of the inspection. The inspector will review the approved Mining and Reclamation Plan to see if adjustments can be made for current conditions to help reduce the required financial warranty for the site. The Financial Warranty issue is listed as a problem within this report for reference only. Responses to this inspection report should be directed to Russ Means at the Division of Minerals and Geology, Grand Junction Field Office, 101 South 3rtl Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. I & E Contact Address NAME Art Beavers OPERATOR Beavers Construction STREET P.O. Box 638 CITY/STATEIZIP Paonia. Colorado 81428 cc: ^ CE X BLM, Lynn Lewis ^ FS ^ HW ^ HMWMD (CH) ^ SE