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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1988-021 <br />INSPECTION DATE 5/1/09 INSPECTOR'S INITIALS RCO <br />OBSERVATIONS <br />This inspection was performed by the Division as part of its monitoring of Construction Materials 110c permits. The operator <br />was contacted about the scheduled inspection. The operator's representative named on page one was present during the <br />inspection. Also present during part of the inspection was the permittee's onsite operator, Adrian Absmeier. <br />The permitted acreage is five acres, much of which is mined out. Reclamation has begun on the slope south of the access <br />road, and some of the western edge of the pit floor has been cleaned up. Active mining is carried out on the northern half of <br />the site. The operator stated that he will be preparing and submitting an amendment application soon. He wishes to amend up <br />to 4.99 acres onto the permit, toward the north and east, resulting in a new total acreage of 9.99 acres. Some general <br />guidelines for 110 permit amendment applications were discussed with the operator, especially the need for well-prepared <br />maps. (The operator is advised that the DRMS website now has "fillable" application forms. See www.mining.state.co.us.) <br />There is a stockpile of several thousand tons of crushed gravel in the pit, but no processing equipment onsite. There were a <br />loader and dozer in the pit, that were being used at the time of the inspection. Also present in the pit was a portable scale, <br />though it was not installed yet, and an elevated diesel storage tank, which was empty. The approved plan does not include a <br />scale, so the operator should not install it until the permit is revised to allow this (the amendment application may include the <br />scale if the operator wishes). The operator stated that the scale may be moved just offsite since it will be for ranch purposes. <br />The diesel tank did not have an impermeable liner under it, which is not a problem as long as there is no fuel in the tank. If fuel <br />is stored there, a liner is required. Various options for a liner were discussed, as well as removing the tank from the site. <br />The present and post-amendment boundaries were discussed. The operator hand-delivered to this inspector an aerial photo <br />showing the present boundaries and a preliminary version of the area to be added area under the amendment. The photo used <br />is recent imagery (fall 2008) and the boundaries were drawn by a surveyor. They did depict all current activity as being within <br />the boundaries. The operator indicated the general locations of the present corners, but the cormers were not each individually <br />inspected. The operator must ensure that the boundaries are clearly and durably marked, and that a complete and current <br />permit ID sign is posted at the entrance to the site. This is mentioned due to a recent minor change in the operator's name, <br />and since the permit acreage may soon change also, necessitating changes to the sign and markers. These items must be <br />posted throughout the life of the operation. (Please see Rule 3.1.12 for complete information.) <br />Prior to excavation, he operator strips topsoil and stockpiles it for later use in reclamation. Please ensure that it is protected <br />against erosion while it is in stockpile. There was no debris, no contaminants, and no noxious weeds noted onsite. Some <br />topsoil has been recently respread on the reduced slopes south of the entrance ramp. The new slope should be seeded this <br />year, at the proper season (refer to the approved reclamation plan). All excavation is now carried out on the north half of the <br />site. The highwall is steep, but there is still enough land inside the boundary around the perimeter to doze it down. <br />The bond for this site is $9,035, an amount which dates from 2003. The Division's new recalculation is attached to <br />this report. The updated bond estimate is $10,507, which indicates an increase of $1,472. This constitutes your <br />Notice of Bond Increase, and the additional amount must provided within 60 days of the signature date of the mailing <br />of this inspection report. <br />No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of <br />Reclamation, Mining and Safety, 691 County Road 233, Room A-2, Durango, Colorado 81301, Attn: Bob Oswald; phone no. <br />970-247-5193. (Please note this new address and update your records if needed.) <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Scott Lamb <br />Soward Ranch LLC <br />PO Box 659 <br />Creede, CO 81130 <br />cc: Steve Shuey, DRMS <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />? WQCD (CH) <br />? OTHER