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PERMIT #: M-1980-135 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: August 25, 2010 <br />Financial Warranty: <br />The Division currently holds a financial warranty in the amount of $20,000.00. The Division will recalculate the <br />required financial warranty amount once Gravel Pit No. 4 has been inspected. <br />Hydro ogic Balance: <br />Gravel Pit No. 2 contained exposed groundwater at the time of the inspection. Surface water from the Antelope <br />Draw is being diverted into Gravel Pit No. 3, which is being used as a recharge pond as part of the Operator's <br />augmentation plan. The exposure of groundwater and the impoundment of surface water has been approved <br />under a District Water Court Decree (Water Division No. 1, Case No. 90-CW-189). As noted above, the <br />Division was unable to access Gravel Pit No. 4, which lies on the west side of County Road 31. An aerial <br />photograph from 2009 shows that Gravel Pit No. 4 contains water. The Operator's augmentation plan does not <br />cover Gravel Pit No. 4. The Division will make arrangements to inspect Gravel Pit No. 4 once the Operator has <br />provided a source of legal right of entry onto the property. Upon inspecting Gravel Pit No. 4, the Division will <br />determine if the mine operation is in compliance with applicable Colorado water laws and regulations <br />governing injury to existing water rights. <br />Reclamation Success: <br />A large pile of trash was observed on the north side of Gravel Pit No. 2. The refuse consisted of asphalt, <br />concrete rubble, rebar, plastic containers and used oil drums and fuel tanks. In the report of the inspection <br />conducted on December 10, 2003, it was noted that the Operator may use this material for backfill. Based on the <br />contents of this refuse pile, the material would not be suitable for backfilling. The presence of this refuse pile <br />has been cited as a problem and will require corrective action by the Operator. <br />Revegetation: <br />Tamarisk was observed along the shoreline of Gravel Pit No. 2 and 3. Tamarisk is on List B of the Colorado <br />Noxious Weed List. The presence of Tamarisk is considered a problem and will require corrective action by the <br />Operator. <br />This concluded the inspection. <br />Page 3 of 18