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PERMIT #: M-1986-040 <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 <br />monitoring program. Lester Crawford, representing Bear River Sand and Gravel, was present during the <br />inspection. Photographs are included at the end of this report to illustrate the conditions observed during the <br />inspection. <br />A mine identification sign was not posted as required at the entrance of the mine site. This is noted as a <br />problem. <br />The operation was not actively mining during this inspection although various stockpiles were still located on <br />site. Additional mining at the site is anticipated, so final grading and reclamation has not yet commenced. An <br />adequate financial warranty for this site was calculated following the inspection, and the current financial <br />warranty held by DRMS is considered inadequate at this time. This is noted as a problem. <br />No other problems or violations were noted during the inspection. <br />GENERAL INSPECTION TOPICS <br />The following list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each <br />RECORDS----------------------------------- Y (FN) FINANCIAL WARRANTY-------- PB (RD) ROADS------------------ Y <br />HYDROLOGIC BALANCE------------- Y (BG) BACKFILL & GRADING--------- Y (EX) EXPLOSIVES--------- NA <br />PROCESSING WASTE/TAILING---- N (SF) PROCESSING FACILITIES------- Y (TS) TOPSOIL---------------- Y <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE----------------- N (RV) REVEGETATIO:N---- Y <br />SIGNS AND MARKERS----------------- PB (SP) STORM WATER MGT PLAN---- N (SB) COMPLETE INSP---- N <br />OVERBURDEN/DEV. WASTE--------- NA (SC) EROSION/SEDIMENTATION--- N (RS) RECL PLAN/COMP-- N <br />T) ACID OR TOXIC MATERIALS------- Y (OD) OFF-SITE DAMAGE ---------------- Y (ST) STIPULATIONS------- N <br />V = insnerted and found in comnlianre / N = Nnt insnerted / NA = Not annlirahle to this nneratinn / PR = Prnhlem rited / PV = Pnssihle vinlatinn rited <br />Page 3 of 4