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(Page 2) MINE ID # OR PROSPECTING ID # M-2000-032 INSPECTION DATE 5-13-2003 INSPECTOR'S INITIALS SSS. CBM This was a routine monitoring inspection conducted as part of DMG's ongoing monitoring program far permitted mines in Colorado. Additionally, this inspection will evaluate current site conditions for use in updating the reclamation taut estimate to determine if the curcent reclamation bond is adequate to reclaim the site. The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. No signfFcant infestations of noxious or other problematic weeds were noted on site during this inspection. No signiflcant erosional features were noted on the affected areas of the site. Topsoil stockpiles have been in place for over 1 year and are not stabilaed as required by Rule 3.1.9. Some minimal vegetation, mostly annual weeds, have grown on the stockpiles, but the piles are still mostly bare. Failure to stabilize these materials is noted as a problem, with required corrective actions, on the last page of this report. Mining snd pit backfilling are currently on-going. The operaton has mined out an estimated 8.5-9 acres and completed backfilling an estimated 3 acres, This leaves an excavated pit approximately 5.5~ acres in size. The mining and elclamatan plans indicate that at no point in the operation would the pit be larger than 3 acres in size. This maximum sae of pit was a commitment made in the permiUing process to keep the reclamation cost reduced. Because the pit is required to be completely backfilled and because there is a shortage of on-site fill material, all fill for backfilling the excess pit area must be imported at signficant cost This situation results in a condition where the site is drastically under-bonded. Section 34-32.5- 117(6)(a) of the Land Reclamation Act for the Extraction of Construction Materials specifies that a financial warranty shall be maintained in good standing for the life of the permit This deviation from the mining and reclamation plans is noted as a problem, with required wrrnctive actions, on the last page of this report. To ensure stability of permanent man-made structureswithin 200 feet of the affected area, the operator made a commitment, in the mining plan, to mine the north, west and south pit perimeters at a 3H:1 V slope when excavation progressed ro within 100 feet of the permit boundary. Tha current pit slope on the north side of the pit is well within the 100 foot zone and is currently a vertical slope. To ensure the stability of structures north of and adjacent fa the north permit boundary, the operator must complete backfi0ing of the north highwall , to a grade no steeper than 3H:1 V by no later than June 30, 2003. This IS noted as a problem, with iequired corrective actions, on the last page of this report. In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the approved reclamation plan, DMG has updated the reclamation cost estimate (spy ertcbsed). Clearly, the site Is currently under-bonded. Therefore, purauaM to Sectlon3432.S-717{4) of the Colorado Land Reclamation Aet, adequate nnancial warranty moat be submitted to DM6 wRhfn 80 days Of the mailing data of this report Please review the enclosed figures as soon as possible and comact our office if any calculation errors are noted. Responses to this inspection report should be duecttid to Steve Shuey at the Division of Minerals and Geology; Grand Junction Field Office, 101 South 3'd Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-5358. E Contact Address NAME Martin Azcarraga OPERATOR M.A. Concrete Construction STREET 2323 River Road CITVlSTATE/ZIP Grand Junction, Colorado 81505 cc: Carl Mount -DMG Denver Office ^ CE ^ BL ^ FS ^ HW ^ HMWMD ICH- ^ SE ^ WOCD {CHt ^ OTHER