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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-2006-084 <br />INSPECTION DATE: 1 1 /4/2009 <br />INSPECTOR'S INITIALS THM <br />OBSERVATIONS <br />This inspection was conducted as part of the normal program established by the Colorado Division of Reclamation, <br />Mining and Safety and to assess the amendment to increase disturbed acreage from 42.8 acres to 81.95 acres and <br />increase annual production from 250,000 to 500,000 tons per year. The White River City Pit is located <br />approximately 17 miles west of Meeker, Colorado off of Piceance Creek Road. The site is a 112c operation with <br />92.7 permitted acres. Larry Johnson of Connell Resources, Inc. accompanied the inspector during the inspection. <br />The mine identification sign and the affected area boundary markers are in place and in compliance with rule 3.1.12. <br />The sign is located at the main entrance on the east side of the gravel mine. The permit boundaries are comprised of <br />posts that are easily identifiable around the entire perimeter of the mine. A buffer zone of 20 to 40 feet was <br />observed in most areas between the excavation areas and the permit boundary. <br />The proposed area to be added to the total disturbed acreage is an increase of 39.15 acres located immediately north <br />of the currently disturbed area. The proposed area is located on a low floodplain that includes several areas that are <br />considered to be wetland. <br />All components of the mine operation were inspected including the process and staging area, crushing and screening <br />area, wash and settling ponds, overflow discharge pond and areas of active mining. <br />The pit is currently active and various pieces of heavy equipment were observed working in the permit area. A <br />crusher was observed at the south end of the mine. A concrete batch plant was observed at the southwest corner of <br />the permit area that is operated by Northwest Ready Mix out of Craig, Colorado. Wash and settling ponds were <br />observed at the east end of the permit area, stockpiles of various construction materials were observed on the pit <br />floor in the middle of permit area. The current active mining of construction materials appeared to be in Phase 3 of <br />the current approved disturbed acreage. No evidence of offsite storm water erosion was observed during the <br />inspection. <br />No significant infestations of noxious or other problematic weeds were observed at any of the areas visited during <br />the inspection. <br />No problems or violations were observed during the inspection. <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the <br />approved reclamation plan, DRMS will update the reclamation cost estimate to address the proposed amendment to <br />increase disturbed acreage. The estimate will be forwarded to the operator under separate cover. <br />Photos that show the conditions observed during the November 4, 2008 inspection are included at the end of this <br />report. <br />Responses to this inspection report should be directed to Travis Marshall at the Division of Reclamation, Mining <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone <br />no. 970-241-2042.