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PERMIT #: M-2006-050 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: March 16, 2011 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Kenneth Morrison of Lincoln County was also present for the inspection. The Andersen Farms site is <br />located approximately five miles northeast of Genoa, Colorado. The site is permitted for 7.6 acres and the <br />post-mining land use is rangeland. <br />Gen. Compliance With Mine Plan: <br />Lincoln County operates the pit less than 180 day per year. According to the most recent annual report, the <br />total disturbance to date is approximately 4.8 acres. No mining was taking place at the time of the inspection; <br />no equipment was present on site. All mining activities are located on the north side of Dugout Creek; no <br />mining is occurring within the creek channel. The Operator has constructed a small earthen berm, along the <br />south and east sides of the pit, to prevent stormwater runoff from entering Dugout Creek. The berm did not <br />show any signs of erosion and appeared to be functioning as intended. All pit slopes have been maintained at <br />3H:1V. <br />Signs and Markers: <br />The permit sign was posted at the entrance to the site in accordance with Rule 3.1.12. The,southwest <br />boundary marker was not in place; this has been cited as a problem and will require corrective action by the <br />Operator. <br />Topsoil: <br />The topsoil is stockpiled north of Dugout Creek. The stockpile is currently covered in common cocklebur and <br />has not been seeded with the approved seed mix; this has been cited as a problem and will require corrective <br />action by the Operator. <br />This concluded the inspection. <br />Page 2 of 4