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(Page 5) MINE ID # OR PROSPECTING ID # M-1977-208 INSPECTION DATE 6/24/04 INSPECTOR'S INITIALS ESC The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. PROBLEMS/POSSIBLR VIOLATIONS AND CORRBCTIVE ACTIONS 1. PROBLEM: CEMEX obtained a water sample from the C-Pit on June 2, 2004 using the analytical method of dissolved selenium. On June 21, 2004, CEMEX reported the results of the sample at 0.186 mg/L, above the 0.02 numeric protection level for selenium. CORRECTIVE ACTIONS: CEMEX will perform the following: 1. Monitor the A and C Pita weekly for the parameters established under the permit for 2 months to determine if there is a change in the selenium concentration. 2. Consult with a wildlife biologist to determine the impacts to wildlife as a result of the configuration and selenium concentration of the C-Pit. 3. Provide a groundwater response plan to the Division by July 26, 2004. 2. PROBLEM: Areas of the CEMEX Lyons ¢uarry have been reclaimed differently than what was approved in the original application and subsequent revisions to the permit (i.e. roads, highwalls and location of ponds). C.R.S. 34-32.5-116(4)(q) requires that final reclamation be completed within 5 years after the date that mining has been completed. CORRECTIVE ACTIONS: DATE PB or PV:PB TOPIC (S):HB 7/26/2004 PB or PV:PB TOPIC (S):RS 10/01/2004 CEMEX will need to reclaim the site as per the reclamation plan, or file a revision to the permit to reflect roads to remain on site, the retention of highwalls (or a variance of the 2h:ly/3h:ly) slope and the location of ponds by October 1, 2004.