2009-05-21_INSPECTION - M2001023

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(Page 2) MINE ID # OR PROSPECTING ID # M-2001-023 INSPECTION DATE 05/18/09 INSPECTOR'S INITIALS PSH OBSERVATIONS This was a pre-operation inspection of the Camilletti Milner Pit #2 amendment (AM-01) area conducted by Peter Hays with the Colorado Division of Reclamation, Mining and Safety (Division). Mr. David Zehner with Precision Excavating, Inc. (Precision) was present during the inspection. The Camilletti Milner Pit #2 is located approximately 1 mile south of the Town of Milner, Colorado in Routt County. The site is located south of the Yampa River and west of Routt County Road 179. The amendment site would be operated by Precision Excavating, Inc. on land owned by Camilletti Sons, Inc and the Colorado State Land Board. The 112c amendment application (AM-01) was received by the Division on February 17, 2009 and deemed complete for purposes of filing on March 16, 2009. The Camilletti Milner Pit #2 amendment proposes to add an additional eighty (80) acres to the current forty five (45) acre pit. Pit operations will remain the same, but the life of the gravel pit will be extended. The permit amendment would modify the phasing of extraction of materials from Milner Pit #2. Upon completion of extraction of gravel from Mine Block 2 from the current pit, operations would be moved to the proposed expansion area. After removal and stockpiling of topsoil and overburden, gravel mining will begin. The gravel will be removed down to the shale valley floor bottom and transported via conveyer belt and/or haul trucks from the extraction area to the current operations area. Processing including crushing, washing, screening and stockpiling of various products would remain in the current pit operations area. There would be no change in the existing operations area with the loading of haul trucks and utilization of the existing access haul road in and out of the pit. The amendment area will be dry mined with de-watering trenches used to facilitate the mining operation. The average gravel depth in the amendment site is 30 feet (35' closer to Trout Creek and 20' at the toe of the slope). Mining would proceed in phases in the proposed expansion area as shown on the Mine Plan map with a fifty (50) foot setback from the south side of Trout Creek. This proposed setback is the same as the setback for the existing pit. The expansion area is currently traversed by a gas transmission line contained within a 50 wide easement which must be either avoided or relocated by the operator. The gas line easement is identified on the Mine Plan map. The Operator has been involved in discussions with Xcel Energy, owners of the gas transmission line to relocate the line. At the time of the inspection, it had not been determined whether the gas transmission line will be relocated or whether the line will be avoided by mining operations. Additionally, there is an existing Yampa Valley Electric Association (YVEA) power line near the south boundary of the proposed expansion area. Precision Excavating would prefer the gas transmission line and the YVEA line to be relocated to an easement corridor near the base of the hillside, which lies to the south of the proposed pit area. The operator is requesting approval of the expansion area with the right to mine around the transmission lines or to relocate the lines. The operator must commit to not mining within two hundred (200) feet of the Xcel gas line and the Yampa Valley Electric power line until structure agreements are provided to the Division. The present amendment area land use is rangeland. The proposed post-mining land use is water resource consisting of 2 unlined open water ponds divided by the Xcel Energy gas line easement. Pre-operation inspection photographs were taken and are attached below. All structures noted on the Pre-Mining Plan Map appear to have been identified by the operator.