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(Page 4) <br />MINE ID # OR PROSPECTING ID # M-2000-014 <br />INSPECTION DATE 10/01/08 <br />INSPECTOR'S INITIALS PSH <br />The following problems (PB) and/or possible violations (PV) (and suggested corrective <br />actions) were identified during this inspection. The problems should be corrected by the <br />dates given, or they will become possible violations. The possible violations should be <br />corrected by the dates given to reduce their severity when considered by the Mined Land <br />Reclamation Board. The inspector noted on the previous page should be notified of all <br />corrective actions taken. <br />PROBLEMS/POSSIBLE VIOLATIONS <br />AND <br />CORRECTIVE ACTIONS <br />1. PROBLEM: <br />CORRECTIVE DATE <br />12/01/08 <br />PB or PV:PB <br />Failure to maintain an adequate financial warranty to reclaim TOPIC(S):FN <br />the Yust Ranch Gravel Pit. <br />CORRECTIVE ACTION: <br />The Division currently holds a financial warranty of $7,500 <br />based on a phased reclamation bond liability. The Division <br />estimates the total cost to reclaim the current 4 acres <br />disturbance is $12,700 and the cost to reclaim the total 9.9 <br />acre site is $28,100.00. <br />Submit the required additional financial warranty amount <br />required for the Yust Ranch Gravel Pit permit (File No. M-2000- <br />014) of $5,200 or $20,600.00 in a form acceptable to the <br />Division or perform the required reclamation to reduce the <br />unreclaimed portion of the affected area to 3 acres or less by <br />the corrective date. <br />CORRECTIVE DATE <br />12/01/08 <br />2. PROBLEM: <br />PB or PV:PB <br />Failure to maintain the required 3 acre phased maximum allowed TOPIC(S):MP <br />disturbance acreage. <br />CORRECTIVE ACTION: <br />Submit and receive approval by the Division, per Rule 1.9, of a <br />technical revision to increase the maximum allowed disturbed <br />acreage to a minimum of 4 acres or perform the required <br />reclamation to reduce the unreclaimed portion of the affected <br />area to 3 acres or less by the corrective date. <br />I, Peter Hays, hereby certify that on October 20, 2008, I deposited a true and complete <br />copy of this foregoing inspection report in the United States Mail, first class postage <br />paid, to the operator of record for this site at the addresdicated, and to those <br />others within the body of this report who have been designto receive copies (DBMS <br />personnel excepted). 7 <br />Signature