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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1997-098 <br />INSPECTION DATE: 10/30/2007 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS THM <br />This inspection was conducted as a part of the normal program established by the Colorado Division of <br />Reclamation, Mining and Safety. The Flag Creek Quarry is a 112c permitted site located approximately 10 miles <br />south of Meeker, Colorado off of Rio Blanco County Road 13. James Ritchie and Christopher Morris of Quality <br />Quarry, LLC and Pam Leschak with the B.L.M. White River Field Office were all present during the inspection. <br />The mine identification sign was in place and in compliance with rule 3.1.12. The sign is posted on the fence located <br />at the main entrance on the west side of the Flag Creek Quarry. <br />The Quarry is currently active at the top of the permit area and is accessed from the east from section 13. Mining of <br />the flagstone is taking place in both section 13 and 14. According to the Mine Plan map the majority of the mining <br />is taking place in Phase II on the face of the talus slope. It appeared that all three phases of the quarry had been <br />mined at one time or another. An excavator and a front end loader were observed working the mine face. The rock <br />was being palletized in the quarry and then loaded on to trucks. The pallets of flagstone were then hauled to the <br />quarry staging area located approximately one mile to the north west of the quarry on the east side of County Road <br />13. <br />The staging area for the quarry consists of approximately 15 acres. The staging area had approximately 75-100 <br />pallets of flagstone ready for sale. A large waste rock pile was observed to the north of the office in the staging area. <br />Miscellaneous excavation and haul equipment was observed in the staging area. An excavator with stained soil <br />around it from spilled oil or hydraulic fluid was observed. It was explained to Division staff that the excavator was <br />scheduled to be removed from the site within the next two weeks. Overall, the staging area was observed to have <br />normal conditions that are associated with active mining. <br />It was explained to the Division that the quarry is going to be inactive within the next two weeks. It is not known if <br />the mine will be put into temporary cessation or if the mine will be reclaimed and permanently closed. <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the <br />approved reclamation plan, DRMS will update the reclamation cost estimate. The estimate will be forwarded to the <br />operator under separate cover. <br />Photos that show the conditions observed during the inspection are included at the end of this report. <br />No problems or violations were noted or observed during the October 30, 2007 inspection. <br />Responses to this inspection report should be directed to Travis Marshall at the Division of Reclamation, Mining <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone <br />no. 970-623-5596.