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OBSERVATIONS <br />PERMIT #: M -1978 -279 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: July 8, 2011 <br />This inspection was conducted as part of the Division of Reclamation, Mining and Safety's (Division) normal <br />monitoring program. Fred Frei, representing the Operator, was present during this inspection. Photographs are <br />included at the end of this report in order to illustrate some of the conditions observed during this inspection. <br />The Goldman Gravel Pit is located approximately 2.5 miles southwest of Silt and accessed from CR 335. The <br />site is a 110c operation that includes a total of 8.5 permitted acres. The Division currently holds a financial <br />warranty amount of $17,300.00 for this site. The Division will review the reclamation costs for this site in order <br />to ensure the financial warranty reflects the actual current cost of fulfilling the requirements of the Reclamation <br />Plan. The Operator will be notified if the Division determines that the current financial warranty amount is <br />insufficient. <br />Adequate mine identification signage was noted at the entrance to the site in accordance with Rule 3.1.12(1). <br />The affected area was marked by fencing that was clearly visible and adequate to delineate the affected area <br />boundary. <br />An oil /gas well pad was constructed in 2010 in the southeast portion of the permit area. According to the <br />Operator's 2010 annual report map, the well pad and associated slope include 3.66 acres. The well pad slopes <br />appeared stable. They were seeded and mulched prior to this inspection. The seed mix used, according to the <br />2010 annual report, consisted of Indian ricegrass, crested wheatgrass and yellow sweet clover. The vegetation <br />observed on the slopes consisted primarily of weed species that could threaten the establishment of the desired <br />species, and should be treated as soon as possible. Construction of the well pad was not addressed in the <br />Reclamation Plan for this site. The Operator shall revise the Reclamation Permit for this site accordingly. <br />No other 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 3 <br />