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(Page 2) <br />MINE ID # OR PROSPECTING ID #: m-2nn1-1 n7 <br />INSPECTION DATE: 4/1 5409 INSPECTOR=S INITIALS: MAC- <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety. <br />Also present for the inspection were Doug Graff and Chris Zadel of Northern Colorado Constructors, Inc. The <br />NCCI Pit 41 is located 13/4 miles north of Fort Lupton, Colorado. The site is permitted for 175.63 acres. <br />This inspection was conducted as part of the Division's regular monitoring program. The permit sign was posted <br />at the site entrance and the permit boundary was clearly delineated. The site was actively being mined at the <br />time of the inspection. The Mine Plan contains 13 Phases; Phases 1-5 have been disturbed. Extraction is <br />currently taking place in Phase 5; mining is nearing completion on this Phase. No reclamation has been <br />performed to date. When mining of the current phase is complete, the pit slopes will be lined and restored to <br />3H:1 V. The topsoil has been removed from the disturbed area and stockpiled along the east side of Phase 5; the <br />stockpile is vegetated and does show any signs of erosion. <br />Dewatering trenches have been constructed on the floor of the disturbed phases. The groundwater is being <br />pumped into a sediment pond on the southwest corner of the pit and then discharged into Little Dry Creek. The <br />Division has an updated copy of the Operator's well permit and Substitute Water Supply Plan from the Office of <br />the State Engineer, which is valid through December 31, 2009. The Division does not have a copy of the <br />Operator's discharge permit from the Colorado Department of Public Health and Environment; please see Page <br />3 of this report for the required corrective actions. The Operator has recently constructed three sediment ponds <br />in Phase 7 to replace the sediment ponds located in Phase 1 and Phase 12. The location of the new sediment <br />ponds needs to be reflected in the Mining Plan and on the Mining Plan Map; please see Page 3 of this report for <br />the required corrective actions. <br />The post mining land use for this site is a developed water resource consisting of two'separate reservoirs. Mr. <br />Graff indicated that upon the completion of mining in Phase 5, extraction would proceed to Phases 8-10. The <br />mining operation will be conducted out of sequence in order to complete mining of the northern reservoir prior <br />to completion of the southern reservoir. The Division approved a phased bonding structure to reflect the 13 <br />Phases of mining. Currently the Division holds a financial warranty in the amount of $1,143,537.00, which will <br />cover reclamation costs through Phase 7. If the Operator decides to mine out of sequence, then a Technical <br />Revision must be submitted to account for the new phasing sequence. This will allow the Division and the <br />Operator to more easily track the required bond amount. <br />This concluded the inspection. <br />I & E Contact Address <br />NAME: Doua Graff <br />OPERATOR: Northern Colorado Constructors. Inc. <br />STREET: 9075 Weld County Rand 10 <br />CITY/STATE/ZIP: Fart I urn, CQ 80691 <br />cc: t CE <br />F BL <br />F FS <br />F HW <br />r HMWMD (CH) <br />F SE <br />E WQCD (CH) <br />F OTHER