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(Page 2) MINE ID # OR PROSPECTING ID # M-1995-026 INSPECTION DATE 8/24/05 INSPECTOR'S INITIALS RCO This inspection was performed by the Division as part of its monitoring of Construction Materials 112c permits. The operator was contacted about the date and time of the inspection. The operator's representative named on page one was present during the inspection. The site was identified by the required permit ID sign at the entrance gate. The affected area boundaries are marked by fencelines and markers. The site was not active at the time of the inspection. The pit floor contains several stockpiles of various materials, and a couple stackers and small crushers. AI activity appears to be contained in the Phase 1 area, as approved in the permit. No hydrocarbons are stored onsite. There is no debris or contamination on the site. Some of the disturbed areas exhibit healthy annual weed growth, which appears to be be effectively controlled or managed as ongoing reclamation is carried out. The west wall of the pit is in its final configuration: 3:1 slope, topsoil replaced, erosion controlled, and good revegetation with no weeds. The north wall and east wall are sloped at 3:1 also, to ensure better stability until they are disturbed again. (The pit slopes are mined at 3:1, which improves stability and reduces reclamation needs throughout mining phases.) The north wall is not in its final location, and will be moved northward into Phase 4. The east wall will move eastward into Phase 2. Because they are temporary, neither of these slopes have topsoil replaced or revegetation. The slopes contain some annual weeds, butjudging by the successful reclamation (i.e., weed control) of the west wall of the pit, this is not a problem. The topsoil pile is in Phase 2, which has not yet been mined. There is a part of the surface on the north end of the pile that exhibits recent disturbance (removal for topsoil replacement?)and it should be graded to a gentler gradient and seeded to keep the annual weeds down. Keeping the weeds down while it is stockpiled will make the job of keeping reclamation areas (where the topsoil is replaced) weed-free easier. The operator is reminded that wherever possible, placing topsoil on areas to be reclaimed as soon after it has been stripped elsewhere (by either minimizing or eliminating its time in stockpile), increases revegetation success since soil viability is maximized. The south end of the pit floor contains a stormwater control berm, which appears to keep runoff and sediment from entering the drainageway south of the pit. There was no evidence of runoff water gullying the native slope below the pit floor or impounding in the drainageway, or of sediment being transported below the pit. The operator stated that good aggregate is believed to possibly extend much deeper, and that after the current phases are mined down to the present (Phase 1) floor level, a second round of deeper mining might be considered. Since this is not part of the existing mining or reclamation plans, it would require a technical revision to the permit before it was undertaken. No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no.970-247-5193. I & E Contact Address NAME Garv Havens OPERATOR Custer County STREET PO Box 1669 CITY/STATE/ZIP Westecliffe. CO 81252 cc: Harry Posey, DMG ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER