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INSPECTION DATE: 5/07709 <br />MINE ID # OR PROSPECTING ID #: M-19RR-naa <br />OBSERVATIONS <br />This was an acreage release inspection conducted at the Coal Creek Resource site, DRMS File# M-1988-044. <br />The site is located approximately 15 miles south east of Aurora, Colorado in Arapahoe County. I, Jared Ebert <br />of the Colorado Division of Reclamation, Mining and Safety conducted the inspection. Mr. Mark Heifner of <br />Southwestern Ecological Services accompanied me on the inspection. <br />An acreage reduction request was received by the Division on April 7th, 2009 and was deemed complete for <br />the Office to begin the release process on April 24th, 2009. The operator is requesting the release of 43.32 <br />acres of land within four different parcels throughout the permit area. Each parcel is located adjacent to the <br />main road that runs through the permit area. Attached to this report is a map that was sent to the Division <br />from the operator on April 21St, 2009. This map displays the areas that the operator is requesting to be <br />released, each of the four parcels has been given a designation (Parcel A, B, C and D), so they can be <br />referenced in this report. The parcels are labeled on the attached map. <br />All of the parcels were located adjacent to disturbed and reclaimed land, and there was a defined difference in <br />the disturbed and reclaimed land versus the undisturbed land. Overall, it does not appear that the any of the <br />parcels designated for release have been injured by the mining and reclamation operation. The operator will <br />need to delineate these parcels with monuments of sufficient size and number out at the site to ensure they <br />are not disturbed by mistake by future operations at the site. <br />Given that these parcels are undisturbed, it appears that the 43.32 acres is eligible for release at this time. <br />The remainder of the site was driven, and the map that was submitted on April 21St, 2009 accurately portrays <br />the current site conditions. The northern part of the permit area is largely undisturbed. The processing plant <br />is in place, the map depicts an area of 138.88 acres of land that has been rough graded, then graded, topsoiled <br />and planted. These areas blend in well with the surrounding topography and in several locations native <br />vegetation is establishing well. The southern end of the parcel is where the major excavation is taking place. <br />There has been no disturbance in the Amendment 3 area at the time of this inspection. According to Mr. <br />Heifner, the operator would like to begin operation in the Amendment 03 area. The operator has submitted a <br />Technical Revision to change the location of where future mining will take place in the Amendment 03 area <br />and to designate how many acres will be affected in that area. It is likely that a bond increase will take place <br />once the final details of the Technical Revision have been worked out. <br />2