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PERMIT #: M-1992-003 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: July 1, 2010 <br />OBSERVATIONS <br />The Willis Pit, File No. M-1992-003, was inspected by Peter Hays with the Division of Reclamation, Mining and Safety <br />(Division) as part of the Division's monitoring inspection program. <br />The Willis Pit is located 5 miles northwest of Walsenburg, Colorado on State Highway 160. The site was previously <br />inspected by the Divison on July 26, 2005. The site is permitted for 8.6 acres of disturbance. <br />The wood product and sawmill operation were observed south of the pit. It did not appear the operation has been in <br />production for several year. Mr. Shaw stated the sawmill waste was being used as firewood by the landowner. <br />(BG) Backfilling and Grading: <br />Narrative: The north and west slopes have been temporarily regraded to a 3H:1 V and vegetation is establishing on the <br />slopes. The approved reclamation plan indicates a 4H:1 V slope for the north, east and west slopes. The south slope will <br />daylight. <br />(FN) Financial Warranty: <br />Narrative: The Division currently holds a financial warranty of $14,900, which is adequate to complete the reclamation of <br />the site based on the observations from this inspection. <br />(HB) Hydrologic Balance: <br />Narrative: The pit floor was dry and no evidence of groundwater was observed. <br />(MP) Gen. Compliance With Mine Plan: <br />Narrative: Mr. Shaw stated the pit was last mined three years ago and the material is used for construction and <br />maintenance of ranch roads only. Mr. Crawford has no intention to sell material from the pit, however he prefers to keep <br />the site permitted in case material from the site is used for a future wind turbine project on the property. Product <br />stockpiles were located on the pit floor. <br />The site is approved for a 20 foot deep excavation. The pit floor is approximately 16 deep. <br />A fuel tank storage area was located in the southeast corner of the site. The tanks were empty and an unlined secondary <br />containment berm was observed. <br />(RS) Reclamation Success: <br />Narrative: The approved post mining land use is rangeland. No new reclamation has occurred since the last inspection. <br />(SC) Sediment Control: <br />Narrative: The site appeared stable and no erosion was noted during the inspection. <br />(SM) Signs and Markers: <br />Narrative: An entrance sign and permit boundary markers were not observed as required by Rule 3.1.12. Mr. Shaw was <br />informed of the permit requirements to post an entrance sign at the gate from Highway 160 and delineate the permit <br />boundary markers. Due to the secluded location of the pit on private land and the lack of activity at the site the Division <br />does not consider the lack of entrance sign and boundary markers to be a problem at this time. The Division recommends <br />the Operator survey the site prior to resuming mining activity to ensure all affected land is within the permit boundaries. <br />Inspection Contact Address <br />Mr. Travis Crawford <br />Silver Mountain Preserve, Inc. <br />11850 CR 520 <br />La Veta, CO 81055 <br />Page 2 of 4