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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1977-302 <br />INSPECTION DATE 05/02/06 <br />INSPECTOR'S INITIALS ESC <br />This was an inspection of the Owl Canyon Quarry conducted by Erica Crosby of the Colorado <br />Division of Minerals & Geology. Rob Kisner of Pete Lien & Sons, Inc. was present during the <br />inspection. The Owl Canyon Quarry is located approximately 1/2 mile east of Livermore in <br />Larimer County, Colorado. The Division holds a financial warranty in the amount of <br />$522,000.00. <br />The purpose of the inspection was to inspect an area where the operator requested a surety <br />reduction on 4 acres of reclaimed land and reduce the bond to $502,390.00 (approximately <br />$4,902.00 per acre). Of the 161.5-acre permit area, only 106.48 is to be affected by mining <br />related activities. On May 15, 2002, 7.73 acres wee released from reclamation <br />responsibility. The release request was received by the Division on November 3, 2005. An <br />inspection was delayed until the spring of 2006 due to adverse winter weather conditions. <br />Markers delineate the 4 acre reclaimed area. The area was graded and seeded in 2003. Slopes <br />have been graded to less than 3h:ly and slope towards the east. Vegetation is well <br />established on site, and no erosion features were noted. The operator sprays the site <br />annually for noxious weeds. The operator provided the Division with the seed mixture used on <br />site, and is attached to this inspection report for future reference. <br />The operator will need to provide the Division with a new map depicting the 4-acre area to be <br />released from the permit area. This is to avoid confusion at a later date regarding the <br />location of the area released. Once the map is received and approved by the Division, then <br />the surety reduction request in the amount of $19,610.00 (for a remaining $502,390.00) will <br />be approved. The Division's decision date for the surety reduction request is July, 1, 2006. <br />A map must be provided prior to this date, or the operator can extend the Division's decision <br />date in the form of a written request. <br />I & 8 Contact Addreae <br /> r CE <br />NAME Shelly Erickson r BL <br />OPERATOR Pete Lien & Sons, Inc. r FS <br />STREET P.O. BOx 440 r HW <br />CITY/STATE/ZIP Rapid City, SD 57702 r HMWMD (CH) <br /> r SE <br /> r WQCD (CH) <br />cc: Carl Mount; DMG <br /> Rob Kisne r; Pete Lien & Sons, Inc <br />