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• (Page 21 • <br />MINE ID /t OR PROSPECTING ID # M-1980-146 <br />INSPECTION DATE 1-31-2001 INSPECTOR'S INITIALS SSS <br />OBSERVATIONS <br />This inspection was conducted at the operator's request to view highwall backfilling that has occurred since the <br />reclamation cost estimate was calculated on December 14, 2000. <br />The entire east side of the pit within the original pit floor ("lower pit" in the southwest corner of permit area) has been <br />graded, by cut and fill methods, to an estimated average slope of 3:1. Approximately 300 feet of the south end of the west <br />highwall has been partially reduced in grade, by backfilling with the overburden pile that was located above that highwall. <br />Cut and fill methods were also used to reduce this grade further. The estimated average grade of this highwall, above the <br />lower pit, appears steeper than 3:1 but is not steeper than 2:1. The floor of the lower pit appears to have been backfilled <br />and raised in grade approximately 20 feet. However, this pit did contain water and ice during the previous inspection and <br />therefore may settle significantly during the next field season, <br />The above noted slope reduction will reduce the amount of the reclamation cost estimate. The BLM has indicated that <br />C and J Gravel will most likely be awarded the contract for the forty acres adjacent to the west side of the permit area. <br />This contract is apparently in the final stages of being awarded to C and J Gravel which will also allow for a significant <br />reduction in the reclamation cost estimate. <br />DMG will recalculate the reclamation cost estimate upon receipt of notification that the BLM has awarded the contract. <br />The new financial warranty will then be required within 60 days of the mailing date of that calculation. Based on comment <br />from BLM personnel, it appears that the BLM required bond will be in excess of the DMG required bond. If this is the case, <br />upon verification that the BLM bond is in place, The DMG required bond can be reduced to the minimum 5100.00 allowed <br />by statute. <br />Responses to this inspection report should be directed to Steve Shuey at the Division's Durango Field Office. The address <br />is; Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, phone no. 970-247-5062. <br />I & E Contact Address cc: Tom Gillis, DMG <br />^ CE <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />John Gilleland <br />C and J GravelProducts.lnc. <br />27661 U. S. Highway 160 <br />Durango, Colorado 81301 <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD ICHI <br />^ SE <br />^ WOCD ICHI <br />^ OTHER <br />