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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-19RR-n47 <br />INSPECTION DATE: ~2/1(t/n7 INSPECTOR'S INITIALS: TAS <br />B ERVATIONS <br />1. A site inspection was made of the Cottonwood Pit as part of the Division's on-going 4-year inspection program. The <br />Cottonwood Pit is located 5 miles east of Longmont. Present during the inspection was Casey Felmlee, Denny <br />Ellsworth, Howard Harlan and Mike Hart. <br />2. The Cottonwood Pit is permitted for 400.3 acres. The mine plan specifies de-watering and dry mining methods over 5 <br />phases of operation. Excavation of aggregate materials will occur down to shale, averaging 15-16' below the ground <br />surface for the entire site. Reclamation will include creation of a series of lakes with side slopes averaging 3:1. <br />Surrounding areas will be covered with 12" of topsoil, then revegetated with a grass mix. A variety of trees and <br />shrubs will also be planted in clumps surrounding the shorelines. The post-mining land used are agriculture and <br />recreation. The operator has posted a financial warranty of $92,920 in the form of a corporate surety. <br />3. The following observations were noted for the various stages described in the mine plan: <br />Phase i; The operator has established a 10.17 acre fresh-water pond and a 54.2 acre plant site. The <br />plant site contains product stockpiles as well as a 120,000 cubic yard stockpile of topsoil and <br />overburden. The plant site also includes a scale and variety of crushers, stackers, conveyors, <br />and other miscellaneous mining equipment. The plant site area will be the last area to be <br />excavated following removal or relocation of the plant site equipment. (The operator has <br />provided an estimate of the demolition vests for the plant site). <br />Phase 2: The operator has just begun excavatton of a 16-18' deep de-watering around the perimeter of <br />the Phase 2 area. Stripping operations have also begun. <br />Phase 3: There is no mining disturbance in this area. <br />Phase 4: There is an active 17.3 acre excavation in Phase 3. The excavation averages 10-12' in <br />depth. Pit walls are nearly vertical. There is an elaborate conveyor system in this area <br />leading to the plant site. This inspector estimates a total of approximately 5,000 linear feet <br />of conveyor transporting aggregate materials to the plant site. <br />Phase 5: There are 5 shallow settling ponds totalling 20.35 acres in this Phase area. The operator is <br />considering reclamation of these ponds to wetlands. The operator will submit a modification <br />to the permit to accommodate this change in the reclamation plan. <br />4. Based on the disturbances noted above in Item 3, the Division has calculated a reclamation cost of $421,700. (see <br />attached reclamation cost estimate} This cost is significantly greater than the existing financial warranty. Therefore, <br />the existing financial warranty of $92,920 is not sufficient to complete the reclamation plan. The Division considers <br />this matter to be a problem and requests that the operator post either a replacement warranty of $421,700 or a <br />supplemental warranty of $328,780 within the next 60 days. Please see page 4 for corrective actions. <br />5. The landowner has secured an approved augmentation plan to address water permitting requirements of the State <br />Engineer's Office. <br />6. The operator has posted an entrance sign and permit boundary markers as required by Rule 3.1.12. <br />7. The operator has done a good job of complying with the required setback distance of 25' from all gas Imes and 100' <br />from all wellheads. <br />8. The operator has expressed an intent to submit an amendment application within the next 3 months to address the <br />following changes: a) change in sequence of mining, b) creation of wetlands during final reclamation, c) possible <br />