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PERMIT #: M-2001-017 <br />INSPECTOR'S INITIALS: ECS <br />INSPECTION DATE: June 9, 2011 <br />OBSERVATIONS <br />This was an acreage/surety release inspection for an active 112c sand and gravel operation conducted by Eric <br />Scott of DRMS for the Lohmann Sand and Gravel site operated by LG Everist. DRMS met with permittee <br />representative Lynn Mayer Shults and property owner Jim French at the site at approximately 1100 and toured <br />the site with them. This site was inspected at the request of the operator and property owner following a <br />regularly scheduled inspection at the LG Everist Rinn Valley site. <br />The portion of the site inspected was the "French Pit" area located on the east side of the permitted area. This <br />area has been mined out and reclaimed as a water storage reservoir per the approved reclamation plan. All <br />sloping and earthwork has been completed to final grade, and the initial seeding has also been done. All sloping <br />and earthwork meets reclamation requirements at this time. The lined pit also passed the SEO design standards <br />testing as documented in a letter from the SEO dated January 5, 2009, and submitted with the surety reduction <br />request. As-built plans documenting the final ground surface elevations of the area have been submitted by LG <br />Everist to Weld County to satisfy their request to verify that final ground surface elevations in the flood plain <br />are equal to or lower than the initial elevations at the site, and to document that the flood plain has not been <br />adversely impacted by the mining activity. The pond has also subsequently been filled by the property owner. <br />Although the initial seeding is coming in well, a significant portion of it was disturbed by the property owner <br />this spring as documented in the release request letter submitted by LG Everist. The site reclamation has been <br />completed and approved according to the approved plan, and at this point, the vegetation standard is the only <br />requirement left. The property owner is intent on taking over the site for his own purposes at this point, and has <br />submitted a signed and dated letter to DRMS acknowledging the current site conditions and requesting the full <br />release of their property from the mining permit area at this time. Although the seeded vegetation is not quite <br />up to normal full release standards at this time, it is establishing well. The banks of the pond area are also well <br />stabilized at this time. Because the landowner is adamant and anxious to take over the site in its current <br />condition, DRMS will release this property from the permitted area to prevent potential conflict between the <br />landowner and operator in this final phase of reclamation. <br />Inspection Contact Address <br />Lynn Mayer-Shults <br />L.G. Everist, Inc. <br />7321 E. 88th Ave., Ste 200 <br />Henderson, CO 80640 <br />Enclosure: Acreage Release Approval Letter <br />Page 2 of 3