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PERMIT #: M- 2000 -098 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: August 9, 2011 <br />Away from the current disturbance, but within the permit boundaries is a basin created between the historical <br />mining slope and the waste piles. The basin has water in it at this time. The operator's representative noted <br />that in a usual year the water was gone by this time of year. No samples of the water were taken, but it was <br />noted that the water was clear and some water bugs were observed which indicates tolerable water quality. <br />The operator has done nothing under the current permit to this area. <br />Berms along the toe of the historic piles and throughout the disturbance area appear to be well maintained. <br />The inspector stopped at three points along the river below the current disturbance area. The water was <br />clear, had a beaver dam in one section, and water biota was observed. These are indicators of water quality <br />that have not been negatively impacted by upstream activities. <br />No sedimentation issues from current disturbances were observed either within or along the permit edges. It <br />is important to note that historic piles have had erosion but are undisturbed by the operator. As noted, berms <br />at the base of the outside slopes appear to be collecting sedimentation and directing it towards approved <br />control structures. <br />Based on current conditions, the Division notes the operator is in full compliance with the approved mining <br />plan. Due to the nature of project, reclamation is not concurrent. The material mined, limestone and <br />dolomite, are typically used in acid mine drainage remediation projects. Therefore, waters that infiltrate <br />through the piles may actually help water quality to some extent by increasing the pH. Sedimentation issues <br />were not observed. Unless a specific written issue is raised that was not addressed in this inspection the <br />Division considers the matter closed. <br />The financial warranty has not been reviewed since 2002. The inspector will update the bond based on <br />current conditions and forward to the operator by separate cover. Please note that due to the length of time <br />between reviews substantial increases in the price of seed and fuel may impact the estimated liability. <br />Responses to this inspection report should be directed to Russ Means 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 no. 970 - 241 -1117. <br />Inspection Contact Address <br />Dean Cunningham <br />Colorado Lime Company <br />P.O. Box 1044 <br />Salida, CO 81201 <br />Enclosure: E -mail correspondence regarding possible upstream impacts. <br />Page 3 of 3 <br />