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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2003-001 <br />INSPECTION DATE 02/27/08 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS PSH <br />This was surety reduction request (SR-01) inspection of the Nissen Farm Resource conducted by <br />Peter Hays and Erica Crosby of the Colorado Division of Reclamation, Mining and Safety. Mr. <br />Jim McFarland and Mr. Jeff Gregg with Hall-Irwin Corporation were present during the <br />inspection. The Nissen Farm Resource site is located approximately 2 miles east of Greeley, <br />CO in Weld County along East 18th Street and close to the South Platte River. <br />The surety reduction (SR-O1) request to reduce the reclamation bond for the slurry wall was <br />received by the Division on February 14, 2008. The approved postmining land use is developed <br />water resources. The site has been lined with a bentonite slurry wall to prevent the <br />migration of ground water into the pit. Hall-Irwin Corporation provided the Division with a <br />letter from the Office of the State Engineer, dated April 27, 2007, documenting that the <br />slurry wall passed the design standard for the States lining criteria referenced in the <br />August 1999 State Engineer Guidelines for Lining Criteria for Gravel Pits. <br />During the inspection, Mr. McFarland indicated mining would begin at the end of 2008 or early <br />2009. The unmined pit is currently being use by Central Conservancy District for water <br />storage. The Plumb Ditch located immediately south of the proposed excavation was dry. The <br />ditch is used to supply water to the two (2) temporary recharge pods. Temporary topsoil and <br />overburden stockpiles created from the construction of the recharge ponds were noted on the <br />northside of the site. <br />The mine entrance sign was not observed during the inspection. <br />The Division has recalculated a total reclamation cost of $547,300 for the Nissen Farm <br />Resource as a result of the surety reduction request (SR-O1). This is a reduction of <br />$465,300. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Mr. Jim McFarland <br />Hall-Irwin Corporation <br />301 Centennial Drive <br />Milliken, CO 80543 <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WQCD (CH) <br />cc: Carl Mount; DRMS <br />