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PERMIT #: M-1981-276 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: September 14, 2010 <br />OBSERVATIONS <br />This inspection occurred as part of the Colorado Division of Reclamation, Mining and Safety (DRMS) normal monitoring <br />program. Russell Taylor was present during the inspection. Photographs illustrating the conditions observed during this <br />inspection are included at the end of this report. <br />The Hertzog Pit is located approximately 28 miles west of Craig and accessed from CR 74 <br />The permit area includes 85 acres with a maximum allowable disturbance of 10 acres. Stockpiles were located at various <br />locations in the pit area. One active mining area was located in the southeast region of the main pit, and another active <br />mining area south east of the main pit. The highwalls observed during this inspection were left at approximately 1H:1 V <br />slopes. The main pit highwall was approximately 30 feet high. <br />Following this inspection, an adequate financial warranty estimate was calculated for this sight and the current bond <br />amount is considered inadequate at this time. The increase in reclamation cost for this site is largely due to an increase in <br />seed prices. It was recommended to the operator that mining the highwall at a gentler slope will help to keep reclamation <br />costs lower by minimizing the amount of earthmoving required to create the required 3H:1 V slopes during reclamation. <br />Used batteries were observed on the ground in several locations onsite that shall be stored in an appropriate container, or <br />preferably removed from the site and disposed of properly. <br />Several oil drums and buckets were observed on site that lacked any type of secondary containment. These shall be stored <br />properly or removed from the site. <br />No other problems or violations were noted during this inspection. . <br />Inspection Contact Address <br />Russell Taylor <br />RNP Enterprises, Inc. <br />1135 County Road 30 <br />Craig, CO <br />81625 <br />Page 2 of 3