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PERMIT #: M-2004-026 <br />INSPECTOR'S INITIALS: JLE <br />INSPECTION DATE: February 22, 2011 <br />OBSERVATIONS <br />This was a full performance and financial warranty release (SL-01) inspection of the Leone Gravel Pit; DRMS <br />File No. M-2004-026 operated by Leone Sand and Gravel, LLC. This site is approximately 4 miles northeast of <br />Trinidad, Colorado in Las Animas County. I, Jared Ebert of the Colorado Division of Reclamation, Mining and <br />Safety conducted the inspection. Mr. Joe Gagliano of U Development, Inc., Frank Leone and Wayne Leone <br />accompanied me on the inspection. <br />This is a 56 acre 112c operation. Mining took place at this site on top of and into a hill with a northern and <br />western aspect. The site can be split into two levels; the upper level is the hill top at the southern end of the <br />site. The lower level is at the base of hill. Both levels are bisected by a gully with an intermittent stream. The <br />access road enters from the north from Highway 160/350. The majority of the earthwork and grading at the <br />site is complete. There is a small excavation on top of the upper level of the site. Several stockpiles of mined <br />material and rock are still in in-place at the southern end of the site. Mr. Leone stated this material would be <br />processed and removed from the site in the future. Aside from the small pit and stockpiles, the top level has <br />been graded to match the surrounding topography. <br />The hill side has been graded to a gradual 3:1 horizontal to vertical ratio of less, and the lower level of the site <br />has been graded nearly flat. It appears the majority of the earth work was completed recently, very little <br />vegetation has established throughout the site. The top level, the hill slope and the lower level east of the <br />gully have not been seeded. However, the lower level of the site on the west side of the gully has been <br />revegetated. A thick stand of grass has established in this area. <br />Given the lack of vegetation establishment over the majority of the site and the presence of stockpiles and the <br />small excavation, the site has not been completely reclaimed to the specifications of the reclamation plan. <br />Enclosed with this report is a copy of the approved seed mixture to be used for site reclamation. At this time, <br />full performance and financial warranty release will be denied. <br />Page 2 of 5 <br />