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(Page 2) MINE ID # OR PROSPECTING ID # M-1977-195 INSPECTION DATE 9/27/05 INSPECTOR'S INITIALS ESC This was an inspection of the Highway 291 Pit conducted by Erica Crosby of the Colorado Division of Minerals and Geology. Fred Baldwin of Hard Rock Paving & Redi-Mix, inc. was present during the inspection. The site is located 1 mile north west of Salida in Chaffee County, Colorado. The Highway 291 Pit is a 110 sand and gravel operation, permitted for 6.17 acres. The 110 permit was issued on April 21, 1982. The Division holds a reclamation bond in the amount of $5,000.00. The approved postmining land use is wildlife habitat. A mine identification sign was observed at the entrance to the site. Permit boundary markers were noted on site. Mining was not taking place during the inspection. A small pit has been mined to a depth of approximately 16 feet. Water was noted in the pit, but correspondence in the file indicates that the source of the water is "tail water" from irrigation of the surrounding areas. From the annual reports, it appears that the site was last mine in 2002. In 2004 some reclamation was conducted along the entrance to the road, however, no mining was indicated. In 1987, TR-02 was approved to mine less than 180-days a year. The Division currently holds a reclamation bond in the amount of $5,000.00. In the previous inspection it was noted that the bond may not cover the reclamation cost and would be recalculated to cover the 6.17-acre area. The Division could find no evidence that the bond was recalculated. The Division will review the bond to determine if $5,000.00 is sufficient to reclaim the site. Notice of any bond adjustment will be sent under separate cover. I & 8 Contact Addreae ^ CE NAME Ma. Denise Gonzales ^ BL OPERATOR Hard Rock Paving & Redi-Mix, Inc. ^ FS STREET PO Box 1720 ^ HW CITY/STATE/ZIP Canon City, CO 81215-1720 ^ HMWMD (CH) ^ SE ^ WQCD (CH) cc: Carl Mount; DMG (via a-mail)