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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1983-102 <br />INSPECTION DATE 04/16/09 INSPECTOR'S INITIALS PSH <br />OBSERVATIONS <br />The Thompson Resource aka Horn Gravel Pit, File No. M-1983-102, was inspected by Peter <br />Hays with the Division of Reclamation, Mining and Safety (Division) as a result of the <br />succession of operator (SO-02) application approved by the Division on March 9, 2009. Mr. <br />Ken Evans with Reclamation Ridge, LLC was on site during the inspection. <br />The Thompson Resource is located approximately 1 mile northwest of Granby, Colorado in <br />Grand County. The Thompson Resource site was previously inspected by the Division on <br />November 9, 2006. Prior to the inspection, Mr. Stevan O'Brian the former inspection <br />contact for the site stated the amended area has not been mined. Mr. O'Brian was <br />contacted due to difficulties contacting Mr. Daniel Hahn. <br />No mining activities were observed during this inspection. According to Mr. Evans, the <br />site was contracted mined by Ted Pratt with Flintstone Gravel previously. The mining <br />lease with Flintstone expires on July 1, 2009. At the time of the inspection, it was not <br />known who would mine the site in the future or if the pit would be mined in 2009. The <br />amended area has not been mined as Mr. O'Brian indicated. A processing plant and material <br />stockpiles were observed during the inspection. The east highwall was measured at forty <br />(40) feet and the south and east highwalls were measured between ten (10) to fifteen (15) <br />feet high. <br />Imported concrete, rock and asphalt stockpiles were observed in several areas on the pit <br />floor. Mr. Evans stated Flintstone allowed the material to be imported and stored at the <br />site. All imported material stockpiles are required to be removed from the site by <br />Flintstone before July 1, 2009 per the mining contract. <br />The approved post-mining land use is industrial/commercial. The site is approved for <br />69.62 acres of disturbance with reclamation to be completed in a single phase. The north, <br />west and southwest highwalls will daylight has a result of mining creating a site suitable <br />for industrial usage. Reclamation activities were observed in the northeast corner of the <br />original permit area. The reclaimed highwall appeared stable, no erosion was observed and <br />the vegetation was well established. Topsoil stockpiles were observed in the southeast <br />corner of the property. <br />Based on this inspection, the operator did not salvage topsoil as required by the <br />reclamation permit during the last mining activities. Topsoil and overburden were <br />observed in the east and south highwalls. See the attached pictures. No new topsoil <br />stockpiles and no evidence of stripped areas ahead of the highwalls were observed. In <br />several places, topsoil had caved into the pit onto the highwall and pit floor. The <br />Division estimates 650 cubic yards of topsoil were not salvaged. The operator is required <br />by the original reclamation permit to salvage all topsoil and overburden material <br />available onsite. During the September 5, 2006 inspection, the Division estimated 18,550 <br />cubic yards of topsoil would be required to reclaim the site. The amount of topsoil <br />currently stockpiled on site has been estimated at 12,000 cubic yards. 6,000 cubic yards <br />has been observed in stockpile along the eastern boundary and 6,000 cubic yards of <br />stockpiled topsoil in the southwest corner of the site was amended into the permit area. <br />To avoid a possible violation, the operator must document there is enough available <br />topsoil material to re-topsoil the site to an average of six inches. If the topsoil is <br />not available on site, the topsoil will need to be imported by the operator to complete <br />the required reclamation at the site. See the corrective actions section of this report <br />for additional information. <br />The Division currently holds a financial warranty of $112,000. The Division prepared a <br />reclamation cost estimate for the Thompson Resource site based on this inspection. The <br />Division estimates the total cost to reclaim the site is $147,900.00. The estimate <br />includes the cost to import topsoil to replace the un-salvaged amount, demolition of the <br />concrete batch plant and removal of the concrete, rock and asphalt stockpiles. A copy of <br />the estimate is enclosed for your review.