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(Page 2) MINE ID # OR PROSPECTING ID # M-1987-012 INSPECTION DATE 3/20106 INSPECTOR'S INITIALS RCO OBSERVATIONS This inspection was performed by the Division as part of its monitoring of Construction Materials 112c permits. The operator was contacted about the inspection. The operator's representative named on page one was present during the inspection. The required permit ID sign was posted at the entrance gate, and the permit boundary was adequately marked: west, south and north sides by fencelines, east side (an irregular line) by dozer trails cut into the ground surface. There are two inside corners (the NE and SE corners of the narrower center section of the permitted area) which should be more clearly marked, since there is a small area there that is not to be mined. The entrance road between the highway and the pit entrance is permitted (in a 30-foot wide corridor). All activity is contained in the permitted area boundary. There was about 8 inches of new snow at the site, but that did not prevent the inspection of any relevant topics. The site was not active at the time of the inspection (no mining, processing or reclamation), though there had been some loader and truck hauling activity from existing stockpiles earlier that morning. Other than the loader, there was no other equipment at the site. There was an elevated diesel fuel tank (empty) and several pieces of steel cattleguard in the northern portion of the south pit. These might be used on the site by the operator, and storing them here is not a problem. There are presently no fuels or other fluids stored onsite, but in the future if any are to be kept there, they must all be inside secondary containment with an impermeable liner. In the narrower (non-mining) portion of the permitted area, between the pits, there is a scale and scale house, as approved by the permit. The scale has modular concrete abutments and modular decking, all easily removed. The scale house is a modular 8'x8' wooden structure. The north pit is still about 200 feet from the east boundary, and about 300 feet from the north boundary. The east highwall is about 50 feet tall. All highwalls appear to have been dozed down to a gradient between 2.5:1 and 3:1. The operator must maintain the slopes as close to the final reclaimed gradient as possible, as required by the approved plan, and to keep the bond minimized. Most of the entire western edge of the north pit and south pit areas is lined with large topsoil stockpiles. As the northern pit is expanded additional topsoil is added to the north end of the stockpile. There is a large amount of gravel products stockpiled in both pits. The bond amount is $216,866, and is based on reclamation of the entire permit area at the conclusion of mining. That bored amount was calculated in 2001. It is time for this office to review the bond amount. New figures will be sent to the operator, and if an increase is indicated the additional bond will be due within 60 days. There are no problems at this time. No further items were observed during the inspection. Responses io 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 OPERATOR STREET CITY/STATE/ZIP Rock I. Southwav Southwav Construction Co.. Inc. 117 White Pine Dr. Alamosa. CO 81101 cc: Bruce Humphries, DMG ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER cc: Diann Gese, BLM, Divide Ranger District, 13308 W Hwy 160, Del Norte CO 81132