2011-07-18_INSPECTION - M2011017

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OBSERVATIONS PERMIT #: M- 2011 -017 INSPECTOR'S INITIALS: DMC INSPECTION DATE: July 12, 2011 This pre- operation inspection was conducted by the Division of Reclamation, Mining and Safety (Division) in order to document the pre- mining conditions at the Frentress Gravel Pit. Kurt Frentress, representing the Operator, was present during this inspection. Photographs are included at the end of this report in order to illustrate some of the conditions observed during this inspection. The Frentress Gravel Pit is located approximately 3.5 miles southwest of Hayden and accessed from CR 65. The site is a 110c operation that will include a total of 9.9 permitted acres. A financial warranty for this site has not yet been posted by the Operator, so the permit is not yet active. The affected area was marked by survey lathe that were clearly visible and adequate to delineate the affected area boundary. The site is currently utilized as a wheat field. Mining will begin in the western portion of the permit area and progress in an easterly direction across the site. Historically, gravel extraction has occurred in the west portion of the permit area for use within the ranch property. No significant or valuable man -made structures within 200 feet of the permit area were noted during this inspection. No noxious weeds were seen on site. No problems or violations were noted during this inspection. The site conditions observed during this inspection were consistent those portrayed in the application package. Responses to this inspection report should be directed to Dustin Czapla at the Division of Reclamation, Mining and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone number (970) 243 -6299. Inspection Contact Address Rick Domson Breeze Basin Resources PO Box 181 Hayden, CO 81639 Enclosure Cc: Page 2 of 3