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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1983-139 <br />INSPECTION DATE: 24 FehniaW 2010 INSPECTOR'S INITIALS: DR? <br />OBSERVATIONS <br />This inspection was conducted on 24 February 2010 by David Bird of DRMS. Wayne Brantley, site manager, was <br />present representing the Operator. <br />The Leyden Pit is a 112(c) operation that is located just west of the city limit of Arvada and just east of Highway <br />93. Sand and gravel are the commodities of interest mined at the site. However, in addition to active mining, <br />retail sales to the public also occur on site. Thus, there are numerous small product stockpiles of various materials <br />and sizes scattered about the site, and some material that is not mined on site but sold to the public is brought in <br />from other sites. The total permit area is listed as 320 acres. The Division holds a bond in the amount of $50,000 <br />for the operation. The post-mining land use is described as Rangeland. <br />The site overall is in good condition. The weed problem that had been cited by DRMS during a 2004 inspection <br />appears to be well under control. The weed management program appears to be successful and should continue <br />into the foreseeable future. <br />There is a significant problem with respect to the existing mining and reclamation plans and those that are on file <br />with DRMS. The current mining operation bears little resemblance to the mining plan that is on file with DRMS. <br />To bring the site into compliance with respect to the Mining Plan, the operator must file an Amendment that <br />includes an updated current mining plan and mining plan map with sufficient detail to describe all aspects of <br />the mining operation. This is cited as a problem on page 3 of this report, and a description of the minimum <br />requirements of the Mining Plan are also included. <br />Mr. Brantley informed DRMS that the owner of the land, the city of Arvada, plans a future water storage reservoir <br />at the site of the mine after closure. However, no plan was ever filed to that effect with DRMS. To bring the site <br />into compliance with respect to the Reclamation Plan, the operator must include in the aforementioned <br />Amendment a revised reclamation plan with detailed descriptions of the proposed reclamation to be performed <br />before release. This is cited as a problem on page 4 of this report, and a description of the minimum <br />requirements of the Reclamation Plan are also included. Be sure to differentiate in the plan between reclamation <br />that will be performed concurrently with mining versus reclamation to be performed post-mining. <br />It is very likely that the existing Financial Warranty held by DRMS is inadequate given the proposed, but yet to be <br />filed, mining and reclamation plans. After the Amendment has been submitted, DRMS will revisit the Financial <br />Warranty and will perform a recalculation based on the revisions. Notice of any necessary adjustment to the <br />Financial Warranty will be issued at that time. <br />I & E Contact Address <br />NAME: Joe Kraig <br />OPERATOR: Pioneer Sand Company Inc. <br />STREET: P.O. Box 7650 <br />CITY/STATE/ZIP: Colorado Smogs. CO 80933 <br />7aa b' 323 o DDD Z 7RSZ 76 41 <br />cc: <br />F CE <br />F BLM <br />I' USFS <br />F HW <br />r' HMWMD <br />r OSE <br />F WQCD <br />I' OTHER