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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-2009-n1R <br />INSPECTION DATE: 4.415.402 INSPECTOR=S INITIALS: MAC' <br />OBSERVATIONS <br />The inspection of the Heintzelman Project site was conducted by Michael Cunningham of the Division of <br />Reclamation, Mining and Safety. Also present for the inspection was Garret Varra and Bradford Janes of Varra <br />Companies, Inc. The Heintzelman Project (Pit 116) is located approximately 4.5 miles north and 1 mile east of <br />Firestone, Colorado. <br />This was a pre-operational inspection of the Heintzelman Project site. The permit application is currently under <br />Division review; the Division's decision date is June 9, 2009. Public notice signs were posted around the <br />perimeter of the site. The Operator will need to clearly delineate the permit boundary and post a permit sign <br />before mining commences. The site is located east of the St. Vrain Creek on the alluvial plain; the primary land <br />use of the surrounding area is agriculture. <br />The proposed final land use for this site is a developed water resource, consisting of three separate reservoirs. <br />The areas outside of the reservoirs may be developed for agriculture, commercial, or residential areas. <br />Extraction at the Heintzelman Project is expected to last 25 years with an additional 5 years for reclamation. <br />The Operator plans to extract from three separate pits simultaneously. The aggregate will be dry mined to an <br />approximate depth of 49 ft. Ground water levels will be lowered through pumping and will be discharged to a <br />seep ditch that traverses the site. The hydrologic balance will be impacted as a result of mining activities. There <br />are presently 2 monitoring wells on the site which can be used to collect data on groundwater levels. An <br />unnamed seep ditch and the Last Chance ditch lateral bisect the permit boundary in a northeasterly direction. <br />These structures create three separate parcels within the permit boundary, which will result in the three separate <br />reservoirs. The seep ditch is lined with hydrophytes and provides habitat for water fowl and other avian species. <br />Both the seep ditch and the Last Chance ditch lateral contained water at the time of the inspection. <br />The primary entrance to the site will be located off of Weld County Road 17, which runs along the west side of <br />the permit boundary. The Operator is proposing to construct a conveyor route from the Heintzelman Project site <br />to the Kurtz Project, also operated by Varra Companies, Inc. There are a number of different structures located <br />on and around the permit area including: gas wells and gas lines, fences, county roads, houses, outbuildings, <br />overhead power lines. No structures were noted that were not included in the application submittal. The , <br />Operator will need to attempt to obtain damage waiver agreements will all of the owners of permanent man- <br />made structures within 200 feet of the affected area. <br />Based on the inspection, no observations were made that would restrict the approval of the permit. This <br />concluded the inspection. <br />I & E Contact Address <br />NAME: Garret Varra <br />OPERATOR: Varra Companies. Inc. <br />STREET: 8190 Gage Street <br />CITY/STATE/ZIP: Frederick C-0 6051 h <br />cc: Brad Janes, Varra Companies, Inc.