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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-2001-100 <br />INSPECTION DATE: 1 /30/2008 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS THM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining and Safety. The BLM Pit #1 is located off of B Road east of 32 Road approximately 5 miles <br />southeast of Grand Junction, Colorado. The site is a 112c operation that is located adjacent to both the Hall Pit and <br />Ford Pit permit boundaries. Brent Kerr of United accompanied the 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 at the main entrance to the site, which is shared by two adjacent pits. The permit boundaries are <br />comprised offence posts and stakes from a recent survey that are easily identifiable around the entire perimeter of <br />the mine. <br />The pit is a phased operation with a total of 9 phases. Each phase is reclaimed prior to starting the next phase. <br />Currently phase 1 has been mined and reclaimed and United has started mining phase 2. The reclaimed slopes of <br />phase 1 appeared to be no steeper than 3H:1 V. Stockpiles of various construction materials were observed at the <br />northwest corner of the permit area. <br />No evidence of major storm water erosion was observed during the inspection. All precipitation appeared to be <br />contained within the permit boundary and no evidence of off site disturbance was observed during the inspection. <br />No equipment was located with in the permit boundary of the BLM Pit #1. Brent Kerr stated that the market for <br />gravel at the east end of the Grand Valley was not very active. This has limited production and processing of <br />construction materials at the pit to a minimum. <br />No evidence of hazardous materials or spills was observed within the permit boundary. The site was covered with <br />snow therefore it was difficult to determine if any stained soils were present at the site. <br />Various weeds were observed within the permit boundaries. This is not seen as a problem due to an active weed <br />management plan. However, this is noted as a tool to monitor progress during future inspections. <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. The last bond calculation was done in 2001. <br />Photos that show the conditions observed during the inspection are included at the end of this report. <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 />