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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1999-nnA _ <br />INSPECTION DATE: 7J94/09 INSPECTOR=S INITIALS: MAC- <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Brad Janes of Varra Companies was also present for the inspection. The Kurtz Resource Recovery <br />and Land Development Project site is located approximately 1.5 miles from Mead, Colorado. The site is <br />permitted for 295.40 acres, with a Maximum Allowed disturbed area of 85.20 acres. <br />This inspection is a follow up to the inspection conducted on July 21, 2009. During the previous inspection it <br />was noted that actual disturbed area exceeded the Maximum Allowed disturbed area for the site. At present, <br />approximately 180 acres has been disturbed. The primary focus of this inspection is to calculate the amount of <br />Financial Warranty the Division needs to hold in order to complete reclamation at this site. <br />During the inspection it was noted that tamarisk was growing at the bottom of Basin IV, along the south pit <br />wall. Tamarisk is a noxious weed species that is listed on Colorado's List B of Noxious Weeds. The Operator <br />shall remove all tamarisk from the site using methods that were outlined in the Weed Control Management Plan <br />that was approved under Technical Revision - 01. Please see Page 3 of this report for the required corrective <br />actions. <br />Active mining operations are currently taking place in Basin IV. The Mining Plan states that reclamation will be <br />concurrent, to the greatest extent practical. The pit walls in Basin IV have been partially graded. In addition, <br />Basin III and Basin IV have been excavated; the basins are in various stages of reclamation. The topsoil has <br />been stockpiled near the center of the site; the stockpile is vegetated and does not show any signs of erosion. <br />Upon completion of the Financial Warranty calculation, the Division will notify the Operator of the new <br />Financial Warranty amount. <br />This concluded the inspection. <br />I & E Contact Address <br />NAME: Garrett Varra <br />OPERATOR: Varra Companies <br />STREET: 6190 Gaqe Street <br />CITY/STATE/ZIP: Frederick CY0 8051 h