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Noxious weeds were not observed on site. <br />Inspection Contact Address <br />Mike Ludlow <br />Peabody Sage Creek Mining LLC <br />36600 Routt County Road #27 <br />Hayden, CO 81639 <br />OBSERVATIONS <br />Cc: Heather McLaughlin, Routt County Road and Bridge <br />PERMIT #: M -1978 -315 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: July 25, 2011 <br />This inspection was conducted by the Division of Reclamation, Mining and Safety (Division) in response to the <br />Succession of Operators application (SOl) submitted by Peabody Sage Creek Mining, LLC. A company <br />representative was not present during this inspection. Photographs are included at the end of this report in order <br />to illustrate some of the conditions observed during this inspection. <br />The Red Rock Pit is located approximately 10 miles south of Hayden and accessed from CR53. The site is a <br />110c operation that includes a total of 5 permitted acres. <br />In accordance with Rule 4.1.2 (2), a Financial Warranty was not required for this site. The Division will review <br />the reclamation costs for this site in order to determine an adequate Financial Warranty amount to be posted by <br />the Successor Operator. <br />Adequate mine identification signage was not noted at the entrance to the site in accordance with Rule <br />3.1.12(1). The Successor Operator will need to post an adequate mine identification sign upon approval of <br />SO1. <br />The affected area was marked by t -posts on the east, north and west sides that were clearly visible and adequate <br />to delineate the affected area boundary. CR53 marks the south affected area boundary. <br />Mining of a sandstone outcrop has occurred along the north portion of the site. The partially reclaimed <br />highwall observed during this inspection was approximately 300 feet long with a maximum height of <br />approximately 60 feet. Some slope reduction of the highwall, creating slopes between 1 H:1 V to 2H:1 V, had <br />occurred at some time prior to this inspection. This portion of the site appeared to have been seeded with the <br />approved seed mix, consisting of wheat grasses and Indian ricegrass. <br />The area located at the base of the highwall and along CR53 had been graded to create a flat parking/operating <br />area. A stormwater berm had been constructed along the south and east side of this area. This portion of the <br />site had not been revegetated. <br />No problems or violations were noted during this inspection. <br />Responses to this inspection report should be directed to Dustin Czapla at the Division of Reclamation, Mining <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, <br />phone number (970) 243 -6299. <br />Page 2 of 2 <br />