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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-199n--n9A <br />INSPECTION DATE: 8.491.409 <br />INSPECTOR=S INITIALS: MAC <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Dave Mohr of Asphalt Paving Company was also present for the inspection. The Perry Pit is located <br />approximately 2 miles northwest of Brighton, Colorado. The site is permitted for 118 acres. <br />This inspection was carried out as part of the Division's regular monitoring program. The permit sign was <br />posted at the entrance to the site and the permit boundary was clearly delineated per the requirements of Rule <br />3.1.12. The post-mining land use is developed water resource and will result in a 56 acre lined water storage <br />facility. No mining was taking place during the inspection; the processing plant was operational. The site is to <br />be mined in a single phase. <br />At present, there are three cells which are separated by earthen berms; the berms will be mined through to create <br />a single cell. The pit slopes have been graded to 3H:1 V along the north, south, and west sides of the western <br />cell. The Operator has installed a slurry wall since the last Division inspection on May 22, 2003. According to <br />Mr. Mohr, the slurry wall has passed the 90 day leak test and has been shown to meet the design specifications <br />of the Office of the State Engineer. Prior to final release of the site, the Operator will need to provide the <br />Division with documentation demonstrating that the slurry has passed the leak test. The pits contained water and <br />all future excavation will be wet-mined with a dragline. <br />The Lupton Bottom Ditch flows through the permit area. The Mining Plan, under Amendment-O1, stated the <br />Lupton Bottom Ditch would flow into the reservoir from the south and re-enter the historic channel on the north <br />side. The Operator has instead routed the Lupton Bottom Ditch around the west side of the pit. This change to <br />the Mining Plan will need to be addressed through a Technical Revision, please see Page 3 of this report for the <br />required corrective action. <br />Partial reclamation has been carried out at the Perry Pit including: grading of the shoreline in the western cell, <br />replacement of topsoil along graded pit slopes, revegetation of graded pit slopes, and revegetation of disturbed <br />land surrounding the Lupton Bottom Ditch. It was noted during the inspection that Tamarisk was growing in the <br />southeast corner of the site; tamarisk (salt cedar) is listed on Colorado's Noxious Weed List. Rule 3.1.10(6) of <br />the Construction Materials Rules and Regulations requires that Operators employ methods of weed control for <br />all prohibited noxious weed species. The Operator shall remove all tamarisk from the site using methods of <br />weed control outlined in the approved permit. Please see Page 3 of this report for the required corrective action. <br />The Division holds a financial warranty in the amount of $1,451,074.00. The Operator chose to bond for the <br />total disturbance over the life of the mine, allowing the operation to be conducted in a single phase. Based on <br />the observations of this inspection, the financial warranty is adequate to complete reclamation at this site. <br />This concluded the inspection. <br />I & E Contact Address <br />NAME: Dave Mohr <br />OPERATOR: Asphalt Paving Company <br />STREET: 14809 W 44th AvP_ <br />CITY/STATE/ZIP: Golden. CO 80403