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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1925-030 <br />INSPECTION DATE: 19.41 61408 INSPECTOR=S INITIALS: -MAC <br />OBSERVATIONS <br />This inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety. <br />The Green Bros. Pit #2 is located in Morgan County, approximately 1 mile north of Fort Morgan, Colorado. The <br />mine operates under a 110 Construction Limited Impact Reclamation Permit and is permitted for 9.9 acres. <br />The inspection was in response to a Succession of Operators, which was approved by the Division on November <br />26, 2008. The purpose of the inspection was to determine if the current Financial Warranty is adequate. The <br />permit sign and boundary markers were posted in accordance with Rule 3.1.12. The topsoil and overburden has <br />been removed from Phase 1 of the permit area. The overburden stockpile is located in the north end of Phase 4 <br />and the topsoil stockpile is located in the south end of Phase 4. Both of the stockpiles have vegetation growing <br />on them and do not show any signs of erosion. Removal of sand and gravel from the mine has not occurred and <br />there was no mining equipment present at the time of the inspection. No problems or violation were noted <br />during the inspection. <br />The approved post mining land use for this site is rangeland; the site will contain an unlined lake when <br />reclamation is complete. The Division currently holds a Financial Warranty in the amount of $4,800. The <br />Succession of Operators did not result in any changes to the Mine Plan or the Reclamation Plan. As a result, the <br />Division calculated the Financial Warranty using the same figures that were used in the original bond <br />calculation. The Division has determined the current cost of reclamation to be $7,624. The difference between <br />the original Financial Warranty amount and the revised amount can be attributed to inflationary increases in the <br />cost of reclamation. The Division will send notice of a Financial Warranty Increase under separate cover. <br />This concluded the inspection. <br />I & E Contact Address <br />NAME: Darren Gebhart <br />OPERATOR: McAtee Construction Company <br />STREET: 990 Fdwnrd-, AvP. <br />CITY/STATE/ZIP: Sterling CCU 80751