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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-2008-009 <br />INSPECTION DATE: 4/10/2008 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS THM <br />This inspection was a pre-operational inspection conducted by the Colorado Division of Reclamation, Mining and <br />Safety to assess the proposed 60 acre 112c permit area. The Lyster Pit is located approximately 2 miles south of <br />Craig, Colorado off of State Highway 394. Steve Baker of 3B Enterprises, LLC and Larry Lyster of Lyster Oil <br />Company accompanied the inspector during the inspection. <br />The required posting of the notice of pending application for a reclamation permit was in place and in compliance <br />with rule 1.6.2(l)(b). The sign is located on the fence at the main entrance on the north side of the gravel mine. The <br />permit boundaries are comprised of fences that are easily identifiable around the entire perimeter of the mine except <br />the southern border which runs along the Deep Cut Ditch. <br />The Deep Cut Ditch proximity to the proposed mining operation was observed and photographed during the <br />inspection. The inspector was not able to determine if the proposed mining operation would impact the ditch flow <br />during the inspection. An investigation of the soil and under burden characteristics would aid in determining if the <br />proposed mine operation will impact ditch flow. <br />The proposed operation is currently an irrigated pasture that was used for livestock. The existing vegetation is <br />diverse and consists of a variety of grasses along with Sagebrush which was observed in the non-irrigated areas ofthe <br />proposed pit. <br />No permanent man made structures were located on site. <br />No exposed ground water was observed at the site. <br />Photos that show the conditions observed during the inspection are included at the end of this report. <br />No problems or violations were noted or observed during the April 10, 2008 inspection. <br />Responses to this inspection report should be directed to Travis Marshall at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South 3`d Street, Room 301, Grand Junction, Colorado 81501, phone no. <br />970-623-5596. <br />I & E Contact Address cc: <br />NAME: Steve Baker ? BLM <br />OPERATOR: 3B Enterprises, LLC ? FS <br />STREET: P.O. Box 1665 ? HW <br />CITY/STATE/ZIP: Craig, CO 81626 ? HMWMD (CH) <br /> ? WQCD (CH) <br /> ? OTHER <br /> X Carl Mount, DRMS