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PERMIT #: M-2010-055 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: August 5, 2010 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety (Division). <br />Kim Ogle the Weld County Department of Planning Services and Clay Kimmi of the Weld County Public Works <br />Department were also present for the inspection. The Division received a notice of a possible illegal mining operation on <br />July 29, 2010 from Weld County. The site is located approximately 3.5 miles southwest of Grover, Colorado. A review of <br />the Division's records found that a reclamation permit has not been issued for the site. <br />Michael Konig, the owner of the surface of affected land, could not be reached. Therefore, the inspectors were unable to <br />enter the property and only conducted a partial inspection. A significant amount of surface disturbance was observed <br />from the site entrance located off of Weld County Road 81.Various stockpiles and berms were observed on the site. At <br />the time of the inspection a front-end loader was placing material into a haul truck. The inspectors made contact with Brett <br />Becker, the front-end loader operator, and J.D. Tillman, the haul truck driver. They informed the inspectors the borrow <br />material was being sold to Noble Energy, in addition to being used on adjacent properties owned by Konig family. Mr. <br />Becker and Mr. Tillman were informed they were engaged in mining of an unpermitted site and were possibly in violation <br />of C.R.S. 34-32.5-109(1) for failure to obtain from the board or office a reclamation permit prior to engaging in a new <br />mining operation. According to Mr. Becker, the site was being operated by Joel Konig. The Division was unsuccessful in <br />contacting Joel Konig while at the site. <br />This concluded the inspection. <br />I, Michael Cunningham, hereby certify that on August 11, 2010, I deposited a true and complete copy of this <br />foregoing inspection report in the United States Mail, first class postage paid, to the operator of record for this <br />site at the address indicated, and to others within the body of this report who have been designated to receive <br />copies (DBMS personnel excepted). <br />Signature <br />Page 2 of 3