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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1981-013 <br />INSPECTION DATE: 03/24/2009 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS THM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining and Safety. The Nichols Pit is located 8 miles west of Collbran, Colorado off of Highway 330. <br />The site is a 112c operation. John Nichols of Nichols Gravel Pit, LLP accompanied the inspector during the <br />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 on a post at the main entrance on the North side of the gravel mine. However the sign has the <br />wrong permit number on it the sign has the permit number 81-139 and it should be 81-013. Please correct the sign <br />and send photo documentation to this office no later than April 30, 2009. The permit boundaries are comprised of <br />fences that are easily identifiable around the entire perimeter of the mine. <br />The operator contacted the Division the previous week by telephone to discuss mining a corner located along the <br />northern border of the gravel mine. The operator was not sure what steps needed to be taken to modify a minor <br />component of the mine plan that involved mining material within the 25 foot setback that is an approved condition <br />in the mine plan. The operator was advised to submit a technical revision to the mine plan which would account for <br />the slight modification in mining method. <br />The operator attempted to mine material at the northwest corner of the mine but changed mining plans after digging <br />test holes that revealed that a minimum of 20 feet of overburden existed at this location of the mine. The mining <br />direction has changed and is moving towards the southeast from the crusher location within an area that has already <br />been disturbed but the mining is taking place at a slightly greater depth. The approved mine plan calls for a mining <br />depth of approximately 50 feet, therefore the operation is in compliance of the approved mine plan. <br />The site was active during the inspection. Two dozers were observed moving material near the crushing and material <br />processing equipment. <br />No evidence of erosion or off site damage was observed during the inspection. <br />Photos that show the conditions observed during the inspection are included at the end of this report. <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. The estimate will be forwarded to the <br />operator under separate cover. <br />No problems or violations were noted or observed during the March 24, 2009 inspection. <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.