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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2000-118 <br />INSPECTION DATE 1/25/2010 INSPECTOR'S INITIALS PSH <br />OBSERVATIONS <br />The Pino Pit, File No. M-2000-118, was inspected by Peter Hays with the Division of Reclamation, Mining and <br />Safety (Division) as part of the Division's monitoring inspection program. Mr. Jim MacDonald with APC <br />Southern Construction Co., LLC was present during the inspection. <br />The Pino Pit is located in Huerfano County approximately 13 miles northwest of Walsenburg, CO. The site was <br />previously inspected by the Division on June 15, 2005 in response to a Succession of Operator and Transfer of <br />Permit Application (SO-01). The Division approved the transfer of the Pino Pit permit from DG Huskin <br />Construction Co. to APC Southern Construction Co., LLC on November 3, 2005. <br />The site is permit for 80 total acres with 35 acres of disturbance at one time. The 2009 annual report <br />submitted by APC indicated no activity occurred at the site during the previous year. During the inspection, <br />Mr. MacDonald stated the site has not been mined since 2000-2001. Mining activities are scheduled to <br />resume at the site in spring 2010. The required 50 foot boundary and 25 foot power line offsets were <br />confirmed during the inspection. No processing facilities were observed during the inspection. A small <br />stockpile of reject material was located in the southwest corner of the processing area. <br />The pit excavation was approximately 40 feet deep. The north, south and east pit slopes were temporarily <br />sloped at 2H:1V. The west pit slope and pit access was sloped at 5H:1V. Erosion in the form of rills and gullies <br />were observed in the west slope. The erosion is not considered a problem by the Division at this time, due to <br />the fact all eroded material is deposited in the pit floor. The erosion issue was discussed with Mr. MacDonald <br />during the inspection as a potential problem during reclamation and operation of the pit. <br />'The approved post mining land use is rangeland. Topsoil and overburden stockpiles were observed along the <br />southern boundary of the current pit. The stockpiles were vegetated and appeared stable. Reclamation <br />activities have started east of the processing area. The reclaimed area was formerly used as a processing area <br />and has been reseeded by the operator. Large trees have volunteered in the pit floor. <br />The Division currently holds a financial warranty of $115,400, which is adequate to complete the reclamation <br />of the site based on the observations from this inspection. An entrance sign was posted and permit boundary <br />markers were observed as required by Rule 3.1.12. No problems were noted during the inspection. <br />I & E Contact Address cc: <br /> ? CE <br />NAME Mr. Jim MacDonald ? BL <br />OPERATOR APC Southern Construction Co., LLC ? FS <br />STREET 11802 W. 44th Ave 0 HW <br />CITY/STATE/ZIP Golden, Colorado 80403 ? HMWMD (CH) <br /> ? SE <br /> ? WQCD (CH) <br /> ? OTHER