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PERMIT #: M-1989-077 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: July 27, 2010 <br />OBSERVATIONS <br />The site was inspected by Michael Cunningham of the Division of Reclamation, Mining and Safety (Division). <br />Stanley Jones of Colorado Alabaster Supply was also present for the inspection. The Colo Alabaster site is <br />located 25 miles northwest of Fort Collins in Larimer County. The site is permitted for 1.9 acres and the post- <br />mining land use is rangeland. <br />The permit sign was posted at the entrance to the site in accordance with Rule 3.1.12. The permit boundary was <br />not delineated; this has been cited as a problem and will require corrective action by the Operator(see Page 1 of <br />this report for the required corrective action). According to the Operator, mine related disturbance at the Colo <br />Alabaster site has always been confined to 1.9 acres or less. However, the affected area has not been confined to <br />a defined permit boundary, but has moved around the 80 acres leased by the Operator. The Operator was <br />informed the affected area must be limited to the confines of a clearly delineated permit boundary. Upon <br />reviewing the permit file, it was determined the Division does not have any record of a legal description of the <br />permit boundary or a Mining and Reclamation Plan Map which defines the location of the permit boundary. The <br />lack of a Mining Plan Map and a Reclamation Plan Map in the permit file has been cited as a problem and will <br />require corrective action by the Operator (see Page 1 of this report for the required corrective action). Since the <br />permit boundary has never been defined, the Division will allow the Operator to define a permit boundary <br />around the currently disturbed area. The disturbed area was traversed with Trimble GeoXT GPS unit and the <br />affected area was found to be 0.4 acres in size. A map showing the exact location of the affected area has been <br />enclosed with this report. <br />The Operator has an area of 1.5 acres which can be added to the affected area. The permit boundary must <br />enclose the currently disturbed area and must equal 1.9 acres in size. The Hard Rock/Metal Mining Rules and <br />Regulations outline the requirements for the Mining Plan and Reclamation Plan Maps, a copy of the pertinent <br />sections of the Rules has been enclosed with this report. <br />This concluded the inspection. <br />Page 2 of 4