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MINE ID # OR PROSPECTING ID #: M-1993-004 <br />INSPECTION DATE: 6/09/9n08 <br />OBSERVATIONS <br />INSPECTOR=S INITIALS: 11 F1 <br />AJW/PSH <br />On June 9th' 2008 I, Jared Ebert, Tony Waldron and Peter Hays of the Colorado Division of Reclamation <br />Mining and Safety conducted an inspection of the Navajo mine; permit number M-1993-004. This site is <br />located about 10 miles northwest of Kiowa, in Elbert County, Colorado. At this time, the operator is changing <br />from Robinson Brick to General Shale Brick, this inspection was conducted to take on-site measurements to <br />determine the proper financial warranty for the site. Mr. Greg Knell of Robinson Brick accompanied us on the <br />inspection. <br />The finical warranty was determined by estimating approximately what it would cost the Division to reclaim the <br />site based on the measurements and observations noted during this inspection. The office has determined that <br />the appropriate financial warranty be set at the amount of $48,297. Please refer to the following pages outlining <br />how the office determined the appropriate finical warranty. <br />The disturbed area measured for this mine is about 13.38 acres; it consists of an access road, pit excavations, <br />overburden stockpiles, topsoil stockpiles, product stockpiles and a processing pad that is constructed out of <br />overburden material. The post mine land use designated for this site is rangeland. The reclamation of the site <br />would consist of filling the pit with remaining clay product and overburden, grading the area to emulate the <br />contours of the surrounding land, spreading topsoil, applying soil amendments, seedbed preparation, drill <br />seeding the area with the designated grass seed mix that has been approved in the current reclamation plan. <br />Standing water was found in the pit excavation (see Figure 1.). The last time this pit was inspected was on the <br />23rd of March, 2006, at that time; standing water was also noted in the pit and cited as a problem. On May 31, <br />2006, the office received a letter from Robinson Brick stating that they believed that the water in the pit was <br />ground water due to seepage from the Dawson aquifer. Also, Robinson Brick stated that they would be <br />applying for a well permit with the state engineer. The office never received confirmation that the well permit <br />was obtained. Please submit evidence that a well permit was in fact obtained for this site. <br />The storm water pond constructed at the south west corner of the processing pad area does not appear to be <br />impounding storm water and preventing erosion (see figure 2-3). The storm water impoundment pond will need <br />to be repaired so that erosion will be further prevented.