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PERMIT #: M-2002-017 <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 O'Dwyer pit is located <br />approximitaley 6 miles north of Genoa, Colorado. The site is permitted for 9.3 acres and the post-mining land <br />use is rangeland. <br />Hydrologic Balance: <br />The Arickaree River is an ephemeral stream and was not flowing at the time of the inspection. The banks of <br />the river are intact and the Operator has limited the depth of excavation within the channel to prevent off site <br />impacts from down-cutting. <br />Gen. Compliance With Mine Plan: <br />The 2010 Annual Report stated mining is complete at the O'Dwyer site. However, Lincoln County has resumed <br />mining and the site is currently active. Mining is taking place within the channel of the Arickaree River. Sand <br />has been stockpiled on the south bank of the river; no mining was taking place during the inspection. The <br />Operator should be aware that the affected area in the southern portion of the mine site has nearly reached <br />the limits of the permit boundary. <br />Reclamation Success: <br />No reclamation has been performed to date. <br />Signs and Markers: <br />The permit sign was posted at the entrance to the site and the boundary of the affected area was clearly <br />delineated pursuant to Construction Materials Rule 3.1.12. <br />Topsoil: <br />No topsoil has been stockpiled at this site, as mining is limited to the channel of the Arickaree River. The banks <br />and the load-out area are also void of soil. <br />This concluded the inspection. <br />Inspection Contact Address <br />Kenneth Morrison <br />Lincoln County <br />103 3rd Ave. <br />Hugo, CO 80821 <br />Page 2 of 3