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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M1999-120 <br />INSPECTION DATE: 5/15/09 INSPECTOR'S INITIALS: ECS_ <br />OBSERVATIONS <br />This was a partial warranty release inspection for an active 112c sand and gravel operation conducted by Eric <br />Scott of DRMS for the Ft. Lupton Sand & Gravel Pit site. DRMS met with Lynn Mayer Shults of L.G. Everist <br />on site. The entire Ft. Lupton Sand and Gravel operation is currently under contract by the City of Aurora to be <br />purchased in phases as the mining is completed for development as water storage. The Golden phase is the first <br />phase to be completed for release, and is a 36 acre area located in the southeast portion of the site. <br />Release was requested by L.G. Everist for the Golden phase of the Ft Lupton Sand & Gravel operation on May <br />4, 2009. The slurry wall for the Golden Phase has already passed the State Engineers Office testing process, <br />and the bonding monies associated with the slurry wall have already been released by the Division. <br />Construction activities for the City of Aurora water storage facilities are scheduled to begin sometime in the fall <br />of 2009 in the Golden Phase. To facilitate this transition and construction process, DRMS has recently <br />approved TR04, as submitted by L.G. Everist, for the release of the cells in a less than fully vegetated condition. <br />All other reclamation requirements, including initial seeding, remain in place. <br />At the time of the release inspection, the Golden Phase of the site appeared to be well sloped and graded <br />according to the approved reclamation plan, and the grasses that had been seeded earlier in the season were <br />coming up well with easily visible drill rows. There was some standing water in the south end of the bottom of <br />the pit due to spring precipitation, but it was being actively pumped out, and the bottom of the pit was visible. <br />DRMS has also received signed correspondence from the City of Aurora dated May, 18 2009 stating that the <br />Golden Phase of the Ft Lupton Sand & Gravel site meets their requirements and that they approve of and accept <br />the current condition of the site. DRMS will approve the release of the 36 acres comprising the Golden phase <br />of the Ft Lupton Sand & Gravel site and release the remaining $78,798.00 of reclamation bond designated for <br />this area. <br />I & E Contact Address <br />L.G. Everist, Inc. <br />Lynn Mayer Shults - Regulatory Manager <br />7321 E 88`" Ave, Ste 200 <br />Henderson, CO 80640