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PERMIT #: M-1981-057 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: May 26, 2011 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). David Towns of Arkins Park Stone Corp. was present for the inspection. The Sprague Red Lyons <br />Quarry is located two miles north of Lyons, Colorado. The site is permitted for 59.70 acres and the post-mining <br />land use is residential. <br />Financial Warranty: <br />The Division currently holds a financial warranty in the amount of $27,000, which has been determined to be <br />sufficient to complete reclamation of the site. <br />Gen. Compliance With Mine Plan: <br />The quarry is divided into three separate quarry areas: Quarry #1, #2, and #3. Each of the quarry areas is <br />limited to five acres in size, for a total of 15 acres. However, the Operator may disturb up to 35.8 acres <br />throughout the site. No mining was occurring at the time of the inspection. <br />Quarry #1 and #2 are connected to each other and are located at the north end of the permit boundary; <br />Quarry area #3 is located at the south end of the permit boundary. Active mining operations are taking place <br />in Quarry #1 and Quarry #2. The pit slopes in Quarry #1 and #2 are 3H:1V or flatter. The west side of Quarry #1 <br />has been leveled and is used a work deck/load-out area. The Division observed a fuel tank in Quarry #1 <br />without a secondary containment structure. The tank did not contain fuel and Mr. Towns stated the tank was <br />being relocated to another site and would not be used without a proper secondary containment structure. <br />The majority of the pit slopes in Quarry #3 are at 3H:1V. There is a highwall located on the west side of the <br />quarry which is approximately 12-15 feet in height and 25-30 feet in length. Loose flagstone and sandstone <br />rubble has been stockpiled on the quarry floor. No reclamation has occurred to date. <br />Signs and Markers: <br />The permit sign was posted at the entrance to the site and the boundaries of each of the quarries was clearly <br />delineated by monuments as required by Construction Materials Rule 3.1.12. <br />This concluded the inspection. <br />Inspection Contact Address <br />David Towns <br />Arkins Park Stone Corp. <br />5975 NCR 27 <br />Loveland, CO 80538 <br />Page 2 of 3 <br />