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(Page 2) MINE ID # OR PROSPECTING ID # M-1881-068 INSPECTION DATE 5/20/03 INSPECTOR'S INITIALS GRM This inspection was preformed as part of the normal monitoring program established by the Colorado Division of Minerals and Geology. The Loesch Pit is located approximately 2 miles east of Rifle, Colorado between Interstate 70 and the Colorado River. The Loesch Pit is a 112c permitted site, covering approximately 170 acres in a phased operation. Doug Grant, the operator s representative, accompanied the inspector for the inspection. The mine identification sign and affected area boundary markers are in place and incompliance with Rule 3.1.12. The sign is posted at the main entrance to the permitted site. Boundary markers are fence lines, t-posts and drainage ditches that are easily distinguishable. Buffer zones along the north and east sides are being honored in Phase I. The pit is currently active. It appears that the larger portion of the 10 acres of maximum disturbance has been reached. Several haul trucks and loaders were observed doing various tasks. The northwest comerof Phase 1 has reached bedrock at approximately 15 to 20 feet. Exposed ground water was noted in this area but it is not a problem as there is an Augmentation Plan in place and the final reclamation for a majority of the site will be a lake. (Photo 2) The operator is actively reclaiming slopes as much as possible concurrent to mining activities. A large stockpile oftopsoil /over burden is located along the north central boundary line and in a few pile along the west. 3H:1V slopes or better have been established along portions of the north and west. Revegetation on a small portion of the north slope has begun. Several species of grasses appear to be doing well with an estimated cover of 80%. It appears the operator is irrigating to facilitate better establishment of the vegetation. More slopes appear to be ready for planting soon. (Photo 1) No significant infestations of noxious or other problematic weeds were noted on site during this inspection. A review of the Reclamation Plan states that native invaders such as tamarisk can be expected as reclamation is accomplished. The inspector would like to warn the operators that since the writing of the plan, tamarisk is now considered a noxious species and has never been considered native . The control of tamarisk should be considered a high priority if it does begin to invade reclaimed areas. No erosion, sedimentation or storm water issues were noted in the pit or along the mine roads. No hazardous materials spills or problems were noted. All fuel tanks are in lined secondary containment structures. Anew tank with built-in secondary containment was noted on site for installment soon. (Photos 3 & 4) Overall the site is clean of unnecessary debris and well maintained. No other issues or problems are noted at this time. In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the approved reclamation plan, DMG will update the reclamation cost estimate. The operator can expect the updated estimate in the next 30 days. Since the bond has not been reviewed since 1995 an increase may be necessary to cover the inflationary costs associated with reclamation efforts. Staff will take into account reclamation efforts already under way and current pit conditions. Responses to this inspection report should be directed to Russ Means at the Division of Minerals and Geology, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. I & E Contact Address NAME Doug Grant OPERATOR Grant Brothers Construction STREET P.O. Box 1027 CITY/STATE/ZIP Basalt. Colorado 81621 cc: p CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER