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OBSERVATIONS <br />PERMIT #: M- 1991 -081 <br />INSPECTOR'S INITIALS: JLE <br />INSPECTION DATE: June 1, 2011 <br />This was a monitoring inspection of the Keeling Pit; DRMS file No. M- 1991 -081 operated by Sam Keeling. This <br />site is located approximately 4.2 miles west of La Veta, Colorado in Huerfano County. I; Jared Ebert of the <br />Colorado Division of Reclamation, Mining and Safety conducted the inspection. Mr. Sam Keeling accompanied <br />me on the inspection. <br />This is a 9.9 acre 110c mining operation for gravel. The permit boundary was marked with metal posts. A <br />circular pit excavation is located at the center of the permit area. The highwall length was measured using a <br />Trimble GeoXT GPS unit and found to be approximately 1,208 feet long. A map depicting the location of the <br />current highwall in relation to the marked boundary is enclosed with this report. The highwall is nearly <br />vertical and approximately 25 feet tall. The Operator has stripped topsoil in advance of the excavation and <br />stockpiled the material for reclamation adjacent to the pit primarily on the western and northern side of the <br />excavation. These piles were stable with vegetative cover. Many old trucks, metal and other types of <br />equipment and machines are stored throughout the property both inside and outside of the permit boundary. <br />A crusher is set up near the entrance of the site in the south central portion of the permit area. <br />The current financial warranty held for the site is $6,763.00. The Division records indicate the required <br />financial warranty amount to be $16,663. It appears the Division inadvertently released a $10,000 Letter of <br />Credit held when the Succession of Operators (SO -01) application was approved on February 4, 2009. <br />However; based on the observation made during this inspection, a new required Financial Warranty amount <br />has been set to $14,737.42. This is $7,974.42 more than currently held by the Division. This issue is cited as a <br />problem at the beginning of this report and will require the operator to submit the amount necessary to <br />increase the financial warranty by September 9, 2011. Also, a letter is enclosed with further instructions to <br />increase the financial warranty and a copy of the Division warranty estimate. <br />Page 2 of 4 <br />