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(Page 2) MINE ID # OR PROSPECTING ID #: M-1980-080 INSPECTION DATE: 9!26/2007 OBSERVATIONS INSPECTOR'S INITIALS THM This inspection was conducted as part of the normal program established by the Colorado Division ofReclamation, Mining and Safety. The Una Pit is a 112c permitted site located 4 miles west of Parachute, Colorado on Highway 6. Edward Settle of Grand Junction Pipe and Supply was present during the inspection. The mine identification sign and the affected area boundary markers are in place and in compliance with rule 3.1.12. The sign is posted on the fence located at the main entrance on the west side of the Una pit. The permit boundaries are comprised offence lines that are easily identifiable. Due to an increased demand in raw and processed materials the Una pit has undergone a steady increase in mining activity. A gravel crusher was operating at the mine location. Loaders were excavating the mine face and loading trucks with gravel during the inspection. Currently on site there is approximately 30,000 tons ofmaterial stockpiled. Adequate amounts of topsoil and overburden appeared to be stockpiled for the permitted reclamation plan. The mined areas in the permit area are in different phases of reclamation. The southwest pond that was mined years prior appears to be ready for release due to its appeazance of being fully reclaimed. It was also observed that EnCana Oil and Gas, Inc. has built a gas plant and has drilled a natural gas well within the northeast section of the permit boundary. As a recommendation, a partial release could be submitted for these two areas of the permit. The northwest pit slopes have been reclaimed to slopes near or at 3H:1 V. The permit requires the slopes to'be no steeper than 3H:1 V. Considering the condition of the slopes around the north pit the Division recommends seeding to insure erosion control. The fall is the preferable time to seed for establishment of desirable plant species. Russian Knapweed was identified near the north edge of the southern reclaimed pit. Due to an active weed control plan this is not considered a major problem but is an issue that needs to be monitored. In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the approved reclamation plan, DRMS will update the reclamation cost estimate. The estimate will be forwarded to the operator under separate cover after receiving an updated survey of the Una pit. The last bond calculation was done in 2003. Photos that show the conditions observed during the inspection are included at the end of this report. No problems or violations were noted or observed during the September 26, 2007 inspection. Responses to this inspection report should be directed to Travis Marshal] at the Division of Reclamation, Mining and Safety, Grand Junction Field Office, 101 South 3`d Street, Room 301, Grand Junction, Colorado 81501, phone no.970-241-1117. I & E Contact Address cc: NAME: Edward J. Settle ^ BL OPERATOR: Grand Junction Pipe and Sunnly ^ FS STREET: P.O. Box 1849 ^ HW CITY/STATElZIP: Grand Junction, CO 81502 ^ HMWMD (CH)