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(Page 21 <br />MINE ID # OR PROSPECTING ID #: M-1981-207 <br />INSPECTION DATE: 12/20/2007 INSPECTOR'S INITIALS THM <br />OBSERVATIONS <br />This inspection was conducted as part of the normal program established by the Colorado Division of Reclamation, <br />Mining and Safety. The Blue Pit is located 2 miles east of Cazbondale, Colorado off of Highway 82. The site is a <br />112c-phased operation with 71.17 permitted acres. Bill Roberts of Western Slope Aggregates accompanied the <br />inspector during the inspection. <br />The mine identification sign and the affected area boundary markers are in place and in compliance with rule 3.1.12. <br />The sign is located on a post at the main entrance on the south side of the gravel mine. The permit boundaries are <br />comprised offence posts with signs that are easily identifiable around the entire perimeter of the mine. A buffer <br />zone of 40 to 60 feet was observed in most areas between the excavation areas and the boundary. <br />The pit is currently active. Various pieces of heavy equipment were observed working stockpiles, loading trucks <br />with material and feeding a portable crusher. The concrete plant was operating during the inspection. Stockpiles of <br />sand used for concrete were observed to the west of the concrete batch plant inside the permit area. Adequate <br />amounts of topsoil and overburden appeared to be stockpiled for the permitted reclamation plan. Lazge stockpiles of <br />material were present during the inspection. Loads of inert fill were observed being unloaded from dump trucks in <br />the northeast corner of the permit azea. No evidence of major storm water erosion was noted. <br />The current excavation of construction materials is in the east end of the permit area and moving to the west. The <br />proposed technical revision is to move the concrete plant form the middle of the permit area to the eastern end ofthe <br />mine. This will allow for the excavation to continue to the west. The high wall to the east of the proposed concrete <br />batch plant is approximately 60-80 feet in height and 300 feet across. The construction of the concrete plant will <br />hinder the ability to reclaim the high wall to the proposed 2.SH:1 V that is required in the reclamation plan. The <br />Division will require a letter stating that the concrete plant will be removed upon completion of mining before the <br />technical revision can be approved. The decision date is January 12, 2008. <br />The current financial warranty in place does not account for the removal of the concrete facility therefore the <br />financial warranty will likely increase. The Division will need dimensions and designs of all structures proposed <br />and currently on site to generate an accurate reclamation cost update. The estimate will be forwazded to the operator <br />under separate cover. The last bond calculation was done in 2000. <br />Various weeds were observed along the permit boundaries. The infestation was light and the weeds did not appear <br />to be noxious. The operator has an active weed control plan therefore this is not seen as a problem. This is noted to <br />use as a tool for monitoring success during future inspections. <br />Photos that show the conditions observed during the inspection are included at the end of this report. <br />All requested material must be provided to the Division no later than Monday January 7, 2007. <br />No problems or violations were noted or observed during the December 27, 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 3`d Street, Room 301, Grand Junction, Colorado 81501, phone <br />no. 970-623-5596. <br />