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PERMIT #: M-2003-037 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: March 2, 2011 <br />This inspection was conducted as part of the normal monitoring program of the Colorado Division of Reclamation, Mining, and <br />Safety (Division). Division inspector Russ Means was accompanied by United / Old Castle SW representative Peter Kearl. <br />The Haldorson Pit is a 112c permit located a few miles NW of Montrose, Colorado on La Salle Road. United did a revision to the <br />permit recently to adjust the internal access roads, remove the originally proposed phasing, and inclusion of a previously approved <br />asphalt batch plant onsite. <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. The sign is located <br />at the entrance to the site off 61.75 Road where it enters the permit access point. Permit boundaries are marked by t-posts and <br />visual berms mark the affected areas. <br />The mine is active with multiple processed materials stockpiles noted. No excavation was noted at this time. The primary focus <br />appears to be installation of the asphalt batch plant and staging for spring mining activities. The concrete batch plant appeared not <br />to be in operation on this day. The inspector notes that all external highwall slopes are 2:1 as required during mining. Internal <br />highwalls are 1:1 and the approximate height is 40 to 50 feet. The mine plans note this as being the approximate maximum <br />proposed depth of excavation. Mining is progressing from north to south as approved. Maximum disturbance as of this date is <br />approximately 52 acres. Mr. Kearl noted that based on current economic conditions and mineable materials within the disturbance <br />footprint the area was very unlikely to increase for the near future. <br />A specific area for concrete reject was observed. No rebar or other trash was observed mixed into the material. United noted the <br />concrete material is recycled back into the system. Asphalt will be handled similarly when the plant comes on line in the next <br />month. <br />Final reclamation calls for 3:1 slopes and agricultural fields when accomplished. Visual berms are topsoil stockpiles that are seeded <br />and have trees. Grasses were noted as being well established, while some of the trees appear to be stressed at one level or another. <br />The inspector notes no final reclamation has started. However final limits for excavation have not been reached. Based on the size <br />of the disturbance area, United should consider beginning final slope reclamation when it becomes possible to reduce reclamation <br />liabilities. <br />Overall the site is very well maintained. No debris or trash was observed on site. All fuels and containers are in approved secondary <br />containment. No evidence of spills or leaks was noted. <br />The financial warranty has not been updated since 2006. With the approved Technical Revision and expansion of disturbance an <br />update to the reclamation liability is both warranted and necessary. The inspector will address the issue through separate cover. <br />No issues, problems, or violations were noted or observed. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, and Safety, Grand <br />Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. <br />Inspection Contact Address <br />Peter Kearl <br />Oldcastle SW Group dba United Companies of Mesa County <br />2273 River Road <br />Grand Junction, CO 81502 <br />Page 2 of 9