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PERMIT #: M-2010-055 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: November 2, 2010 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Rick Behning of Baseline Corporation was also present for the inspection. The Konig Borrow Pit is <br />located 3.5 miles southwest of Grover, Colorado. <br />This was a preoperational inspection of a 112 c Reclamation Permit. The permit application is currently under <br />Division review; the Division's decision date is December 28, 2010. The Konig Borrow Pit is bordered by Weld <br />County Road 81 on the west and Weld County Road 120 on the north. The land use of the surrounding area is <br />predominately agriculture. The proposed mine site will encompass 35 acres and the post-mining land use will <br />be pastureland. The Division last inspected the site on August 9, 2010 and found the Operator had engaged in a <br />mining operation prior to obtaining a Reclamation Permit. The extent of the disturbance was surveyed with a <br />Trimble GeoXT GPS unit. The disturbed area was found to be 10.85 acres in size. The overall conditions of the <br />site remain unchanged from the previous inspection. <br />The mining operation will be carried out in two phases, with each phase encompassing approximately 17 acres. <br />The current disturbance is located on the east side of the site within Phase 1. An existing dirt road provides <br />access to the site from the east side of Weld County Road 81. The road will be graveled to accommodate truck <br />traffic. The access road will remain upon the completion of reclamation so the landowner can access the <br />property. <br />The vegetation on the site is typical of short grass prarie ecosystems. A mix of native grasses and annual weeds <br />were observed including: blue grama, buffalo grass, sage, cactus, russian thistle and kochia. No noxious weeds <br />were observed during the inspection. <br />During this inspection it was noted there was a buried telephone line on the east side of Weld County Road 81 <br />and an overhead electric line on the west side of the road. These structures were not listed under Exhibit S of the <br />permit application; Mr. Behning was informed these structures would need to be included in Exhibit S. The <br />Operator will be responsible for obtaining damage waiver agreements with the owner's of the structures or will <br />have to demonstrate the structures will not be adversely affected by mining per the requirements of Rule 6.4.19. <br />Based on this inspection, no observations were made that would restrict the approval of this application. This <br />concluded the inspection. <br />Inspection Contact Address <br />Joel & Michael Konig <br />Konig Ag Co. <br />37231 Hwy. 14 <br />Briggsdale, CO 80611 <br />CC: Chris Rundall, Baseline Engineering Corp. <br />Page 2 of 2