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PERMIT #: M-1988-021 <br />INSPECTOR'S INITIALS: RCO <br />INSPECTION DATE: May 20, 2011 <br />Reclamation Success: <br />There is no reclamation yet, besides the rough or temporary slopes of the east wall of the pit. <br />Signs and Markers: <br />The current permit boundary corners are marked, and the proposed corners of the amended area are also <br />marked. The operator should seriously consider placing additional markers along the boundary sides, perhaps <br />every 100-200 feet, so that the entire boundary is clearly visible and to ensure that future operations remain <br />within the permit boundary. Presently, all permitted operations have been contained within the boundary. <br />Another note: when the permit is transferred to the new operator, the permit ID sign should be updated with <br />the new name, etc. (See Rule 3.1.12 for sign information) and posted at the entrance. Sign and markers <br />should be visible and durable. <br />Topsoil: <br />The topsoil from the disturbed area is stockpiled near the top of the ramp road down into the pit and along <br />the eastern edge of the site. It is stable and not eroding, but should be seeded to protect it from erosion or <br />respread on areas that can be reclaimed. As new areas are stripped ahead of mining, that topsoil should be <br />stockpiled where it will not be disturbed by mining, and the pile should be shaped to reduce erosion and allow <br />temporary vegetation. If deeper soils are discovered, and a surplus of soil (above the minimum quantity that <br />is required for reclamation) is generated, the operator may want to include the sale of soil as part of the <br />approved activities. <br />For questions regarding this report, please contact this inspector at the Division's Durango Field Office: <br />DRMS <br />691 CR 233, Room A-2 <br />Durango, CO 81301 <br />Tel: 970-247-5193 <br />Inspection Contact Address <br />Scott Lamb <br />Soward Ranch LLC <br />P.O. Box 659 <br />Creede, CO 81130 <br />CC: Randy Riggs and Bob Lundock, Bulldog Trucking (electronic copy) <br />Page 3 of 4