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PERMIT #: M-2002-119 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: August 17, 2010 <br />OBSERVATIONS <br />This inspection was conducted as part of the Division of Reclamation, Mining and Safety (DRMS) normal monitoring <br />program. Gayle Lyman, representing Elam Construction, Inc., was present during the inspection. Photographs are <br />included at the end of this report to illustrate the conditions observed during the inspection. <br />The site is located approximately 20 miles north of Steamboat Springs in Clark, and accessed from CR 62. <br />The mine identification sign and boundary markers were in place and adequate (see photos). <br />Fuel is stored on-site in the staging area in accordance with the approved mining plan (see photos). <br />The highwall height was approximately 40 feet during the inspection, and sloped at approximately 0.5H:1 V (see photos). <br />Topsoil was situated so that the toe of the topsoil stockpile was at least 20 feet from the top of the highwall cut in <br />accordance with the permit requirements (see photos). <br />A sediment detention pond has been constructed in accordance with the approved mining plan and appeared to be <br />functioning properly during the inspection (see photos). <br />A reclamation cost estimate for the site has been calculated (enclosed) and the Financial Warranty currently held by <br />DRMS is adequate for reclamation of the site under current conditions. <br />No possible problems or violations were noted during this inspection. <br />Inspection Contact Address <br />Gayle Lyman <br />Elam Construction, Inc. <br />556 Struthers Ave <br />Grand Junction, CO <br />81501 <br />Page 2 of 2