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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2007-009 <br />INSPECTION DATE 03/20/2007 INSPECTOR'S INITIALS DEG <br />OBSERVATIONS <br />This pre-operational inspection of Permit Number M-2007-009 (Kiowa Clay Mine) was conducted by Deb E. Gonima of the <br />DRMS. The Denver Brick Company c/o Acme Brick representative Albert Templeton was present during this inspection. The <br />site will be located approximately 12 miles southeast of Kiowa, CO. <br />The notice sign was posted at the proposed mine entrance. There was some historical mining activity onsite-within the permit <br />boundaries, but outside of the proposed affected area. Photos of this portion of the site (approximately 100 yards to the east of <br />the cattle pens and south of the haul/access road) were taken to document the disturbance that occurred prior to permitted site <br />operations (see photo 1). <br />It was explained to this inspector that the owner of the cattle pens is Robert MacLean. These pens constitute a valuable <br />permanent man-made structure, and fall within the proposed permit boundaries {see photo 2). Therefore, the applicant must <br />comply with Rule 6.3.12. The applicant was also advised of this in the adequacy review letter completed by this inspector, dated <br />March 16, 2007. <br />According to the maps provided by Banks and Gesso, LLC in the application package the Office of the State Engineer's <br />website shows the approximate location of a well that should fall within the proposed permit boundaries. The Office of the State <br />Engineer's website also states that the owner of this well (No. 123524) is S. Jones of Ramah, CO. However, after an <br />exhaustive field search for this well by this inspector and The Denver Brick Company c/o Acme Brick representative Albert <br />Templeton, no well was found in the location described on the Office of the State Engineer's website, or anywhere within at <br />least a 100 yard radius. This inspector will submit an inquiry for clarification to the Office of the State Engineer regarding this <br />matter. <br />The site is stable, and there appears to be no offsite erosion or activity. However, water retention was observed on site. <br />Responses to this inspection report should be directed to Deb E. G6nima at the Division of Reclamation, Mining and Safety <br />Denver Office, 1313 Sherman Street, Room 215, Denver, Colorado 80203, phone number 303-866-4179. <br />I & E Contact Address cc: <br />^ CE <br />NAME Paul Banks ^ BL <br />OPERATOR Banks and Gesso, LLC ^ FS <br />STREET 720 Kioling Street, Suite 117 ^ HW <br />CITY/STATE/ZIP Lakewood. CO 80215 ^ HMWMD (CH) <br />X SE <br />^ WOCD (CH) <br />^ OTHER <br />cc: John Cona, The Denver Brick Company, 401 Prairie Hawk Drive, Castle Rock, CO 80109 <br />Albert Templeton, The Denver Brick Company, 401 Prairie Hawk Drive, Castle Rock, CO 80109 <br />Tony Waldron, DRMS via a-mail <br />