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(Page 3) <br />MINE ID # OR PROSPECTING ID # M-1992-116 <br />INSPECTION DATE 2/22/05 <br />INSPECTOR'S INITIALS WHE <br />The coal related equipment shown in Photos 1 through 5c appear to be located within the Ewing Mesa <br />permit boundary and such equipment constitutes "affected land" per Rule 1.1(3). Should DMG approve <br />SL-02 for the Carbon Junction Coal Mine, these items will exist solely within the permit boundary of the <br />Ewing Mesa permit. Reclamation liability for these items appears to have been assumed by Four <br />Corners Materials through the submittal and approval of Amendment 2 to the Ewing Mesa permit. <br />Pursuant to Construction Materials Rule 1.1(3), 1.1(41), 4.2.1 and 6.4.5(2), the equipment must be <br />addressed by the reclamation plan and financial warranty. Therefore, a revision to the permit and <br />amount of financial warranty is necessary to address reclamation of these items. Such revision shall <br />address removal of all equipment and appropriate handling of the petroleum contaminated soils, as well <br />as standard reclamation issues. Such revision shall contain a new Exhibit L, Reclamation Costs, <br />addressing each of the items in accordance with Rule 6.4.12. Alternatively, should Four Corners <br />Materials desire to not assume reclamation liability for these coal related items, please submit a release <br />request, in accordance with Construction Materials Rule 4.17, for the lands containing these coal related <br />items. <br />Portions of this report address issues at C-1992-080. Therefore, copy of this report, with maps and <br />photos, is being provided to the permit holder of C-1992-080. <br />Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 <br />Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247-5469. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Marcia Talvitie <br />Four Corners Materials. Inc. <br />P.O. Box 2707 <br />Durango. CO 81302 <br />cc: Harry Posey, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WQCD (CH) <br />^ OTHER <br />CERTIFICATE OF SERVICE <br />I, Wallace H. Erickson, hereby certify that on this 16"'day of March, 2005, I deposited a true copy of this inspection <br />report of the Ewing Mesa Pit No. 1, Permit No. M-1992-116, with two maps and seven photos, in the United States <br />Mail, postage paid, addressed to the following: <br />Marcia Talvitie Sandra Pautsky Michael Savage <br />Four Corners Materials, Inc. Oakridge Energy, Inc. Savage & Savage <br />P.O. Box 2707 4613 Jacksboro Highway 4610 Haystack Drive <br />Durango, CO 81302 Wichita Falls, TX 76302 Windsor, CO 80550 <br />