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PERMIT #: M-2010-049 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: September 24, 2010 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety (Division). <br />Garrett Varra and Brad Janes of Varra, Inc. were also present for the inspection. The Western Sugar Reclamation Land <br />Development Project is located immediately east of Greeley, CO on the south side of the Cache la Poudre River. The <br />proposed permit area is 102.87 acres and the proposed post-mining land use is industrial/commercial. <br />This pre-operational inspection was conducted as part of the Division's regular monitoring program. The 112 <br />Construction Materials Reclamation Permit Application was submitted to the Division on July 13, 2010. The application <br />is currently under review and the decision date is November 18, 2010. <br />The proposed mine site is situated along the south side of the Cache la Poudre River. The Operator intends to mine the site <br />in four separate tracts, with each being reclaimed to an unlined pond. The limits of excavation will occur to within 100 <br />feet of the Cache la Poudre River, with the majority of the site lying in the river's floodplain. The southern bank of the <br />Cache la Poudre River has a slope ranging from 1.25H:1 V to 3H:1 V. The bank is well vegetated with trees and grasses <br />and did not show any signs of significant erosion through the length of the river adjacent to the proposed mine site. The <br />bank has been historically armored with concrete rubble. <br />The site was previously operated as a sugar beet processing area. The former owner of the site created a series of basins <br />which were used in the beet washing process. The basins are primarily located on the southern half of the site; topsoil is <br />nonexistent within the basins. The north half of the site, closest to the river, has been used for agriculture purposes. This <br />area has topsoil to an estimated depth of 12 inches. There are a number of permanent man-made structures located <br />throughout the site including, oil and gas wells and associated oil and gas lines, water wells, an overhead electric line, and <br />an old barn. The Applicant has accounted for all of the permanent man-made structures on and within 200 feet of the <br />affected area. The site contains a ditch which runs from the southwest corner of the site to the northeast corner where it <br />connects to the Cache la Poudre River. The ditch varies in depth from 3 - 8 feet. The north half of the ditch was dry and <br />the south half of the ditch contained standing water and hydrophytic vegetation. The water is believed to be surface water <br />runoff from the surrounding area. The ditch receives storm water runoff through a storm sewer outlet at the southwest <br />corner of the site. The ditch will remain upon completion of mining and the mining operation should not affect the ability <br />of the ditch to transmit storm water runoff to the river. The applicant has proposed to dry mine the site and groundwater <br />would be pumped into the ditch and discharged into the Cache la Poudre River. <br />Based on this inspection, there were no observations made that would restrict the approval of this application. This <br />concluded the inspection. <br />Page 2 of 4