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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1989-052 <br />INSPECTION DATE: 15 October 2009 INSPECTOR'S INITIALS: _DR? <br />OBSERVATIONS <br />This was an aerial inspection conducted on 15 October 2009 by Harry Ranney of DRMS at the request of David <br />Bird. According to Annual Reports submitted by the Operator, the Dakota Clay Pit has seen no mining activity <br />since the previous inspection in 2004. Therefore the need for an on-site inspection was not considered essential. <br />The Dakota Clay Pit is a surface 110(c) pit that mines clay as the only commodity. The total permit area and <br />disturbed area are both listed as 9.9 acres. The Division holds a bond in the amount of $33,700 for the operation. <br />The post-mining land use is described as rangeland. <br />Based on the aerial photographs, conditions at the site appear to be consistent with those described in the mining <br />and reclamation plans for which the 2004 cost estimate was calculated. Therefore, no recalculation of Financial <br />Warranty appears necessary for the purpose of accounting for deviations or modifications to plan. However, it is <br />prudent to account for the effect of inflation on the current Financial Warranty amount. A recalculation of the <br />final reclamation costs using the same criteria that were used in the 2004 calculation indicates that the current <br />Financial Warranty of $33,700 is inadequate, and that an increase to $43,926 is needed to account for the <br />increase due to inflation. This amounts to an increase of $10,226 over the existing Financial Warranty amount. <br />The inadequate Financial Warranty has been cited as a problem on Page 3 of this report. <br />Operator has 90 days from the date of this report to provide the additional Financial Warranty. Notice of <br />Financial Warranty increase will be sent under separate cover. <br />If there has been no activity at the site for 180 days, Operator is required to file a notice of Temporary Cessation. <br />If the Operator can provide evidence that there has been activity at the site in the past 180 days, then the notice of <br />Temporary Cessation will not be required. However, if the Operator cannot provide such evidence, then notice of <br />Temporary Cessation must be filed accompanied by the required $144 fee. <br />I & E Contact Address <br />NAME: Robert Tibbetts <br />OPERATOR: Acme Brick Company <br />STREET: 401 Prairie Hawk Drive <br />CITY/STATE/ZIP: Castle Rock, CO 80109 <br />cc: r CE <br />F BLM <br />F USFS <br />r HW <br />r HMWMD <br />F OSE <br />r WQCD <br />F OTHER