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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1998-013 <br />INSPECTION DATE 02/27/08 INSPECTOR'S INITIALS PSH <br />OBSERVATIONS <br />This was surety reduction request (SR-O1) inspection of The Shores 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 Shores Resource site is located approximately 1 miles east of I-25 and 3 <br />miles north of the town of Firestone, CO. <br />The surety reduction (SR-01) request to reduce the reclamation bond for Ponds A and B slurry <br />walls was received by the Division on February 14, 2008. The approved postmining land use is <br />developed water resources. Ponds A and B have been lined with a bentonite slurry wall to <br />prevent the migration of ground water into the pit. Hall-Irwin Corporation provided the <br />Division with letters from the Office of the State Engineer, dated January 11, 2007, <br />documenting that the slurry walls passed the design standard for the States lining criteria <br />referenced in the August 1999 State Engineer Guidelines for Lining Criteria for Gravel Pits. <br />Mr. McFarland indicated Pond B reclamation was complete and Pond A reclamation was 50~ <br />complete during the inspection. The reclamation of Pond B, located at the northwest corner <br />of the site, appeared to comply with the approved reclamation plan. 4:1 slopes were observed <br />along the shoreline and vegetation appeared to be established and stable. The eastern half <br />of Pond A had been mined and was being used for water storage. The asphalt plant occupied <br />the unmined western half of Pond A. The top of the slurry walls for Ponds A and B were <br />observed during the inspection. <br />Active mining operations were observed in Area 8 the Pond C area. Mr. McFarland stated the <br />final depth of Pond C will be approximately 30' and mining will continue for 1-2 years. <br />No problems or possible violations were noted during the inspection. <br />The Division has recalculated a total reclamation cost of $1,607,800 for The Shores Resource <br />as a result of the surety reduction request (SR-O1). This is a reduction of $1,045,840. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />Mr. Jim McFarland <br />Hall-Irwin Corporation <br />301 Centennial Drive <br />CITY/STATE/ZIP Milliken, CO 80543 <br />cc: Carl Mount; DRMS <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WQCD (CH) <br />