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PERMIT #: M-1983-001 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: September 30, 2010 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Colorado Division of Reclamation, Mining and Safety <br />(Division). Don Riemenscheider and Vince Delacruz of the Washington County Road and Bridge District #3 were also <br />present for the inspection. The Cecil 11-34-49 site is located 1 mile east and 4 miles north of Cope, Colorado. The site is <br />permitted for 9.8 acres and the post-mining land use is rangeland. <br />Hydrologic Balance: <br />At the time of the inspection there was standing water at the bottom of the pit. The water was from a recent precipitation <br />event and is not considered a problem. <br />Gen. Compliance With Mine Plan: <br />The Operator is currently removing material from the south end of the permit area, there was no mining taking place at the <br />time of the inspection. Based on the observations of this inspection, all activities are in compliance with the approved <br />Mining Plan and with the Construction Material Rules and Regulations. <br />Signs and Markers: <br />The permit sign was posted at the entrance to the site and the permit boundary was clearly delineated per Rule 3.1.12. <br />Topsoil: <br />Topsoil has been salvaged and stockpiled on the north, west and east sides of the pit. The topsoil stockpiles are vegetated <br />and did not show any signs of erosion. <br />This concluded the inspection. <br />Page 2 of 4