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of C- COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866-3567 <br />` <br />1876 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: MINE/PROSPECTING ID#: MINERAL: COUNTY: <br />Stewart Pit II M-2009-010 Sand, gravel, borrow Kit Carson <br />INSPECTION TYPE: INSPECTOR(S): INSP. DATE: INSP. TIME: <br />Monitoring Eric C. Scott January 12, 2011 12:00 <br />OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br />Grasser Construction & Paving, LLC None 110c - Construction Limited Impact <br />REASON FOR INSPECTION: BOND CALCULATION TYPE: BOND AMOUNT: <br />Normal I&E Program None $48,681.00 <br />DATE OF COMPLAINT: POST INSP. CONTACTS: JOINT INSP. AGENCY: <br />NA None None <br />WEATHER: IN EQTO S GNATURE: SIGNATURE DATE: <br />Clear January 14, 2011 <br />The following inspection tonics were identified as having Problems or Possible Violations. OPERATORS <br />SHOULD READ THE FOLLOWING PAGES CAREFULLY IN ORDER TO ASSURE COMPLIANCE <br />WITH THE TERMS OF THE PERMIT AND APPLICABLE RULES AND REGULATIONS. If a <br />Possible Violation is indicated, you will be notified under separate cover as to when the Mined Land <br />Reclamation Board will consider possible enforcement action. <br />INSPECTION TOPIC: Off-site Damage/Out of Bounds <br />PROBLEM/POSSIBLE VIOLATION: Problem: Land has been affected outside of the approved permit boundary. <br />This is a possible violation at this time pursuant to: 1.) C.R.S. 34-32.5-116(4)(1) for failure to protect areas <br />outside of the affected land from slides or damages occurring during the mining operation. And/or 2.) C.R.S. 34- <br />32.5-116(4)(i) for failure to protect areas outside of the affected land from slides or damages occurring during <br />the mining operation. <br />CORRECTIVE ACTIONS: Any materials, including salvaged topsoil, must be moved and maintained inside the <br />marked permit boundary and the affected areas outside the permit area restored by the corrective action date. <br />If impacts to areas outside the approved permit boundary are not corrected by the date indicated (June 30, <br />2011) enforcement action by the Mined Land Reclamation Board will be pursued. <br />CORRECTIVE ACTION DUE DATE: 6/30/11 <br />Page 1 of 3