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PERMIT #: M-1994-077 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: September 30, 2010 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety (Division). <br />Don Riemenscheider and Vince Delacruz of the Washington County Road and Bridge District #3 were also present for the <br />inspection. The Nickell Gravel Pit is located 11 miles south of Last Chance, CO. The site is permitted for 67.94 acres and <br />the post-mining land use is rangeland. <br />Gen. Compliance With Mine Plan: <br />Mining operations are taking place within the bed of the Vega Creek, and ephemeral stream, which was dry at the time of <br />the inspection. No mining was taking place at the time of the inspection and no mining equipment was present on the site. <br />According to the Operator, Washington County is actively mining this pit. Sediment is being removed from the bed of the <br />Vega Creek and is pushed up onto the west bank of the creek. Several product stockpiles were located on the east bank, <br />out of the main flow of the channel . The upland areas within the permit area have the beginning of soil development; the <br />surface soil horizon is several inches deep. The actively mined area does not have topsoil; no topsoil had been salvaged at <br />the time of the inspection. <br />Signs and Markers: <br />The permit sign was posted at the entrance to the site and the boundary was clearly delineated per Rule 3.1.12. <br />Based on the observations of this inspection, the mine operation is in compliance with the terms of the approved Mining <br />and Reclamation Plans and the Construction Materials Rules and Regulations. This concluded the inspection. <br />Page 2 of 3