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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-2001-017 <br />INSPECTION DATE: 5/17/2010 INSPECTOR'S INITIALS: ECS <br />OBSERVATIONS <br />This was a surety reduction inspection for an active 112c sand and gravel operation conducted by Eric Scott of <br />DRMS for the Lohmann Sand and Gravel site operated by LG Everist. DRMS met with permittee <br />representative Lynn Mayer Shults at the site office site at approximately 1345 and toured the site with her. <br />The portion of the site inspected was the "French Pit" area located on the east side of the permitted area. This <br />area has been mined out and reclaimed as a water storage reservoir per the approved reclamation plan. All <br />sloping and earthwork has been completed to final grade, and the initial seeding has also been done. All sloping <br />and earthwork meets reclamation requirements at this time. The lined pit also passed the SEO design standards <br />testing as documented in a letter from the SEO dated January 5, 2009, and submitted with the surety reduction <br />request. As soon as the vegetation meets the reclamation standards, this portion of the permit will be eligible <br />for final release. As-built plans documenting the final ground surface elevations of the area shall be submitted <br />by LG Everist to Weld County to satisfy their request to verify that final ground surface elevations in the flood <br />plain are equal to or lower than the initial elevations at the site, and to document that the flood plain has not <br />been adversely impacted by the mining activity. <br />The amount of the bond reduction for the completion of the lining, sloping, and initial seeding of the French Pit <br />area of the Lohmann Sand and Gravel site will be calculated and submitted to the operator under separate cover. <br />I & E Contact Address <br />Lynn Mayer Shults <br />LG Everist Inc. <br />7321 E 88`h Ave Ste 200 <br />Henderson CO 80640