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PERMIT #: M-1988-021 <br />INSPECTOR'S INITIALS: RCO <br />INSPECTION DATE: May 20, 2011 <br />OBSERVATIONS <br />This was a routine monitoring inspection of a Construction Materials 110c permit and a pre-operation <br />inspection of the area to be added to the permit under the current amendment (AM-1). Scott Lamb, the <br />operator, was not present during any of the inspection, but the parties that are to become the operators <br />under the upcoming permit transfer (SO-2) were present throughout the inspection. Some equipment <br />belonging to the former onsite operator was still present at the site, but will be removed soon. <br />Availability Of Records: <br />The amendment application included sufficient maps and narrative to describe the undisturbed area and the <br />planned operations. Past annual reports adequately describe the existing disturbance that was observed <br />onsite. <br />Backfilling and Grading: <br />The pit slopes are being maintained at nearly 3:1, to improve the stability at the site and to reduce the bond <br />needed for reclamation earthwork. The expansion of the site through this amendment will continue the 3:1 <br />mining. The floor of the active part of the pit is several feet lower than the staging area, and it will be partially <br />backfilled as the pit expands northward, to bring the elevation closer to the surrounding area and to avoid <br />exposing groundwater. <br />Complete Inspection: <br />The existing 5.00-acre permit area is nearly fully disturbed, and much of it has been partially reclaimed (such <br />as the level staging area and 3:1 rough-graded slopes). No fuel is stored onsite, and there was no debris or <br />contamination. Stockpiled product is limited. The site is operated in an orderly manner. <br />The additional 4.99 acres to be added under this amendment are presently in upland range-type vegetation. It <br />is gently sloping toward the Rio Grande to the west, exhibits deep dark soils (1-2 ft deep or more), and no <br />noxious weeds or erosion. It is open to cattle grazing, though grazing may need to be deferred or areas fenced <br />when the site is seeded for revegetation. <br />Financial Warranty: <br />The bond will be recalculated for the amendment, and sent to the operator under separate cover. <br />Hydrologic Balance: <br />There is no exposed groundwater and no impounded surface water. All stormwater can be controlled onsite <br />by the depressed pit floor and low berms along the western edge of the staging area. The stormwater <br />controls must be maintained to keep this designated as a "no discharge" site. <br />Roads: <br />The ramp road down into the pit (specifically the segment within the permitted area, not the level segment <br />outside the permit) may be moved either northward or southward to enter the pit at a different location. This <br />change may be made without a technical revision, but must be reported on an annual report, and must be <br />contained within the permit boundary, as amended. The operator should note that MSHA might require <br />safety berms or limit the gradient. <br />Page 2 of 4