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(Page 2) MINE ID # OR PROSPECTING ID #: M-1985-003 INSPECTION DATE: 3 23/2006 INSPECTOR'S INITIALS: CMR. HHP This was a normal monitoring inspection of the Freund Pit conducted by Chris Rowe and Harry Posey of the Colorado Division of Minerals and Geology. Mr. Joey Freund was present as the representative of the Running Creek Ranch the operator and owner of the pit. The Freund Pit is located in northwest Elbert County along the west bank of the Running Creek. The Freund Pit is a sand and gravel construction material 112c operation. The permitted mine area covers 30 acres with 27 acres of affected land. The site consists of an approximate 9-acre excavated area that is completely filled with water. The pond/pit feature is part of the permit operation. Along the eastern edge of the pit/pond is an approximately 20 foot high berm that acts like a levee between Running Creek and the pond/pit. Along the south portion of the western end of the pond is the current excavation area. This area contains product and fines stockpiles. This area also contains a recycled blacktop stockpile. A ranch road enters the permitted area from the north and road runs around the entire affected area. Specific observations of note include: • The recycled blacktop stockpile is not currently a permitted featurewithin the operation plan. The stockpiled material is intended use is on the ranch roads. As long as this material is onsite it considered potential backfill and is handled under section 3.1.5(9) of the Minerals Rules and Regulations. This section states, "If an Operator intends to backfill inert structural fill generated outside of the approved permit area, it is the Operator's responsibility to provide the Office notice of any proposed backfill activity not identified in the approved Reclamation Plan". See the 3.1.5(9) for further detail on what is required in the notice. There are possible approaches; the material can be removed from within the permitted mine area, or the Operator can submit a notice on the use and storage of the blacktop to this office pursuant to section 3,1.5(9) of the Minerals Rules and Regulations. According to the Mineral Rules and Regulation section 6.3,4(1)(d), °If ponds are part of the Reclamation Plan, slopes from 5 vertical feet above to 10 vertical feet below the expected average water level cannot be steeper than 3H:1 V; remaining slope lengths may not be steeper than 2H:1 V". The current post mining land use is rangeland. Along the east and south side of pond the slopes appear to be greater then 3:1 both above and below the water surface. As noted in the two previous inspections the pond slope configuration will need to be addressed as part of the reclamation activities. A couple of options include using some of the berm/levee materials to bring the pond and berm/levee slopes into compliance with the reclamation plan. Another option is for the operator to request a Technical Revision to the Enforcement and Inspection Contact Address NAME: Joseph Freund OPERATOR: Running Craek Ranch STREET: 15460 E. Batavia Dr. CITY/STATE2IP: Aurora. CO 80011 cc: U.S. Army Corps of Engineers CO Hazardous Materials and Waste Division U.S. Bureau of Land Management CO State Engineers Office U.S. Forest Service CO Water Quality Control Division CO Department of Transportation OTHER: