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(Page 2) <br />MINE ID # OR PROSPECTING ID #: m-1999-nA9 <br />INSPECTION DATE: -?15./96/901 n INSPECTOR'S INITIALS: PC.S- <br />OBSERVATIONS <br />This was an inspection requested by the operator for the final release of approximately 6.7 acres on the east <br />side of the Pit #3 area. Applegate Group submitted a final release request for this acreage on behalf of the <br />Kauffman & Sons operation to release this property from the permit area on May 19, 2010. No bond adjustment <br />was requested. When released, the property would be turned over to the owner for likely use as cattle pasture. <br />The inspection was conducted by Eric Scott of DRMS on May 26, 2010. DRMS met Mr. Frank Kauffman of <br />Kauffman and Sons at the site office at approximately 1000. The site entrance is located off the east side of <br />Larimer County Road 9E approximately'/2 mile north of Highway 402 in Larimer County. Access to the area <br />inspected required travel through the operations of the site, so DRMS accompanied Mr. Kauffman to the <br />reclaimed area, which is still under their control. <br />The primary focus of this inspection was to observe the existing conditions of the 6.7 acre reclaimed area, and <br />to determine if reclamation activities have been successfully completed so that the area may be released <br />from the permitted area of the site. The site has been reclaimed as pastureland per the approved reclamation <br />plan, and is still under the control of the Kauffman and Sons operation. Mr. Kauffman stated that the property <br />owner intended to use the area, along with previously released acres, as cattle pasture but that for the last <br />several years no grazing had taken place on the released property. <br />After a brief site orientation by Mr. Kauffman, DRMS walked the area. It was noted that all mining activity had <br />long since ended in the area, and the backfilling and re-grading/leveling of the area had been well done. <br />Vegetation in the area appeared to be well started and healthy. DRMS collected several photos of the area <br />to document current site conditions. It was noted that the acreage previously released was also still in good <br />condition with only minor weeds and very good vegetative coverage. <br />DRMS stated that if Mr. Kauffman wished to release the fenced off but unaffected acreage at the southwest <br />corner of this permit area that it could be done in conjunction with this inspection if a release request was <br />received within the next 30 days. If the release request is received within 30 days and in accordance with 4.17 <br />of the Rule, partial release notifications will be sent to the appropriate parties. If no objections are received <br />then the unaffected property could also be removed from the permitted area when the appeal period ends. <br />Mr. Kauffman also discussed some potential Russian olive tree issues with DRMS. Although currently listed as <br />noxious plants by the State, Russian olive trees are very prevalent in the area as a whole. Some determination <br />will need to be made by DRMS as to how Russian olive will be dealt with within the permitted area for release <br />criteria when the permit is bounded on all sides by significant numbers of them. Mr. Kauffman expressed <br />concern that the total removal of the established Russian olive trees from the banks of an existing ditch on the <br />northwest part of the permit may adversely affect the stability of the ditch during heavy runoff events. This <br />concluded the inspection and DRMS left the site at approximately 1045. <br />The site topography has been well restored and the pasture vegetation is establishing well. DRMS believes that <br />the 6.7 acre area meets the requirements for release from the permit at this time. <br />I & E Contact Address <br />NAME: Frank Kauffman <br />OPERATOR: Kauffman and Sons <br />STREET: 808 South County Road 9F <br />CITY/STATE/ZIP: I nvPlond CCU 80537