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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2010-019 <br />INSPECTION DATE 08 April 2010 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS DMC <br />This pre-operation inspection was conducted in response to a new Construction Materials Regular (112) Operation <br />Reclamation Permit Application submitted April 29, 2010 by Thomas H. Smith. The site is located roughly 3.5 miles NW <br />of Pagosa Springs at an approximate elevation of 7800'. Guiseppe Margiotta, of Trinity Land Consultants, LLC, was <br />present on behalf of the operator during the inspection. <br />The Eagle Mountain Pit will encompass approximately 38.24 acres. The main gravel deposit lies atop a NE-SW trending <br />ridge located in the center of the permit area. The mining is planned to progress north and west from the SE portion of <br />the permit area. At the time of this inspection, the proposed Dutton Creek Road that will be the primary ranch access <br />from Cloman Boulevard had not been constructed (Figures 1-7). The approximate location of the road, however, was <br />marked by survey lathe. This road will provide access to the permit area. <br />Notices have been placed at two points, at the proposed SE ranch access off of Cloman Boulevard and the NW permit <br />area access off of Stevens Lake Road, in accordance with Rule 1.6.2(1)(b) (Figures 1„2,17). <br />Throughout the permit area there are scattered Ponderosa pines up to approximately 75' tall. Gambel oak is thick on <br />east slope of the NE-SW trending ridge previously mentioned (Figures 8-11). Snow cover prohibited ground cover from <br />being observed on the west slope of this ridge, but this area is notably more open (Figures 12-16). The vegetation here is <br />well described in Exhibit J of the permit application package. No noxious weeds were observed on site. <br />It will be recommended that the applicant remove Area 6 of the mining plan from the permit area. This was to be a <br />possible topsoil stockpile location and would require mining activity to cross the private Stevens Lake Road. It is not <br />crucial to the operation and removal of this area from the permit will help minimize possible future conflict with <br />neighboring land owners. <br />Photographs of the area are included at the end of this report that show conditions observed during the inspection. <br />Responses to this inspection report should be directed to Dustin Czapla at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South 3`d Street, Room 301, Grand Junction, Colorado 81501, phone number <br />(970) 243-6299. <br />I & E Contact Address <br />Thomas H. Smith <br />1701 East 147th Street <br />Kansas City, MO <br />64146 <br />Cc: <br />CE: <br />BLM: <br />FS: <br />HW: <br />HMWMD (CH): <br />SE: <br />WQCD (CH): <br />X Other: <br />X <br />Steve Shuey, DRMS GJFO <br />Daniel Russell, Russell <br />Surveyors and Associates, <br />Inc.