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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2008-010 <br />INSPECTION DATE 4/13/10 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as follow-up to the transfer of the approved permit from McStone Aggregates to <br />Stone Sand & Gravel and issuance of the transferred permit to Stone Sand & Gravel. Four photos and a <br />reclamation cost estimation totaling $25,141 accompany this report. <br />As shown in the photos, operations were active during the inspection. The pit area was visually <br />estimated at 2.5 acres area with overburden and topsoil appropriately located for reclamation purposes. <br />Processing and stockpile yard was estimated at three acres area and included a diesel storage tank <br />contained within an appropriate spill containment structure. Total affected lands were estimated at seven <br />acres. The operation appeared compliant with permit conditions and the Act and Rules. <br />Pursuant to Rule 4.2.1(4), the Division has estimated the current cost of reclamation at $25,141. Please <br />find enclosed 13 pages of summary, worksheets and data sheets utilized by the Division to calculate the <br />cost of reclamation. Therefore, the existing $51,293 financial warranty appears sufficient to ensure <br />reclamation. If the area of affected lands will not significantly increase this year the Operator may <br />consider reducing the financial warranty to not less than $25,141. If the Operator desires to reduce the <br />financial warranty to $25,141, please submit a request in accordance with Rule 4.14. However, should <br />the Operator reduce the financial warranty to $25,141, and the operation grows beyond the approximate <br />seven acres of current disturbance, the Division will increase the amount of financial warranty accordingly <br />and, pursuant to Rule 4.2.1(2), the Operator shall have 60 days to post the increased financial warranty. <br />Please be aware that annual reports always require a map of current site conditions, regardless of <br />whether any disturbance has occurred during the report year. <br />Response to this inspection report should be directed to the Division's office in Durango at 691 County <br />Road 233, Suite A-2, Durango, CO 81301, to the attention of Wally Erickson, phone (970) 247-5469. <br />Please note the change of address for the Division's office in Durango. <br />I & E Contact Address <br />NAME Kathy Stone <br />OPERATOR Stone Sand & Gravel <br />STREET P.O. Box 1568 <br />CITY/STATE/ZIP Cortez. CO 81321 <br />cc: Steve Shuey, DRMS <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />? WQCD (CH) <br />? OTHER