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OBSERVATIONS <br />PERMIT #: M- 2009 -086 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: July 28, 2011 <br />The Pickering Family Pit, File No. M- 2009 -086, was inspected by Peter Hays with the Division of Reclamation <br />Mining and Safety (Division) as part of the Division's monitoring inspection program. Mrs. Terry Pratt with <br />Flintstone Gravel & Trucking, Inc. was present during the inspection. <br />The Division's last inspection of the Pickering Family Pit was the pre - operational inspection on January 29, <br />2011. <br />Financial Warranty: <br />The Division currently holds a financial warranty in the amount of $64,000, which is adequate to reclaim the <br />site based on the observations from this inspection. <br />Gen. Compliance With Mine Plan: <br />The site was active during the inspection; processed material was being removed from the site, the processing <br />plant was operating and material was being mined from the current highwall located in the center section of <br />Mining Phase 1A. The new access road off of County Road 61 has been completed. The entire 15 acres mining <br />area has been stripped of topsoil and overburden. The topsoil was placed along the western boundary <br />creating the visual berm required by Grand County and in the northeast corner of the site. The topsoil <br />stockpiles were vegetated, mostly with weeds, and appeared stable. The overburden was stored along the <br />southern boundary. The overburden stockpiles had not been seeded or protected to prevent erosion. Per <br />Rule 3, stockpiles must be seeded for the purpose of stabilization. The Operator stated they would contact <br />the local NRCS office to discuss temporarily seeding the stockpile. The Division suggested seeding the <br />stockpiles with the approved reclamation seed mixture in the fall. The asphalt plant scheduled to be located <br />in the northeast corner of the site was moved off -site due to the space limitations of the pit. The current pit <br />excavation was approximately 20 feet deep. Stockpiles of various processed materials were located in the <br />southern portion of the site. The site was well organized and accurately depicted in the 2011 annual report <br />and map. <br />Reclamation Success: <br />No reclamation activities have begun at the site. <br />Revegetation: <br />Noxious weeds were observed during the inspection, including white top and Canada Thistle. The site was <br />sprayed last week according to the Operator. <br />Signs and Markers: <br />The mine sign and boundary markers were observed as required by Rule 3.1.12. The mine sign was located on <br />the left side of the access road as the road enters the mining area. The Rule states the mine sign should be <br />placed at the entrance of the mine site and be clearly visible from the access road. The Division interprets this <br />Rule to mean the mine sign should be located at the entrance gate of the site off of County Road 61. The <br />Division suggests the Operator relocated the mine sign to the existing sign by the county road or on the <br />entrance gate. <br />Page 2 of 5 <br />