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PERMIT #: M-2000-028 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: July 1, 2010 <br />OBSERVATIONS <br />The Ferrero Pit, File No. M-200-028, was inspected by Peter Hays with the Division of Reclamation, Mining and Safety <br />(Division) as part of the Division's monitoring inspection program. The pit was previously inspected by the Division on <br />June 27, 2005. Mr. Mike Ferrero was present during the inspection. Ferrero Pit is located approximately 13 miles south <br />of Walsenburg, Colorado in Huerfano County. <br />The following are general and itemized observations from the Division's inspection. No problems were noted during the <br />inspection. <br />(AR) Availability Of Records: <br />Narrative: The pit is schedule to be closed and reclaimed by Fall 2011 due to an agreement between the landowner and <br />the Colorado Cattlemen's Association. Mr. Ferrero confirmed the scheduled pit closure during the inspection and stated <br />mining activities will end August 2011 and the site will be reseeded either Fall 2011 or Spring 2012. <br />(BG) Backfilling and Grading: <br />Narrative: No backfilling or grading activities were observed during the inspection. The approved reclamation plan <br />allows for the final slopes at a 2H: 1V slope. Mr. Ferrero stated due to the amount of overburden available at the site the <br />expected final slopes will be 3H: 1V. <br />(FN) Financial Warranty: <br />Narrative: The Division currently holds a financial warranty of $13,887, 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 required runoff collection ditches, berm and sediment pond were observed and appeared to be in working <br />order. No water was observed in the pit or runoff collection structures. <br />(MP) Gen. Compliance With Mine Plan: <br />Narrative: Mr. Ferrero stated mining activities started the previous week for the year. The material from the pit is <br />primarily used for private road maintenance in the subdivisions near the site. Mining equipment including an excavator <br />and crusher were observed during the inspection. The area surrounding the power poles has not been mined and is not <br />schedule to be mined before the mine closure. Mining will proceed to the southeast under the current processing area <br />according to Mr. Ferrero. <br />(RS) Reclamation Success: <br />Narrative: Reclamation activities have not stated at the site. Mr. Ferrero stated the landowner is controlling the weeds at <br />the site. Topsoil stockpiles were observed adjacent to the pits north and east highwalls. The stockpiles appeared stable <br />and were vegetated. <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 was posted and permit boundary markers were observed as required by Rule 3.1.12. <br />Page 2 of 3