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OBSERVATIONS <br />PERMIT #: M -1997 -026 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: August 9, 2011 <br />This inspection was conducted by the Division of Reclamation, Mining and Safety (Division) in response to the <br />Operator's request for a site visit in order to address the feasibility of potential changes to the Reclamation Plan <br />requested by the landowner. Jason Burkey and Chip Bair, representing the Operator, and Bob Newby, the <br />landowner, were present during this inspection. Photographs are included at the end of this report in order to <br />illustrate some of the conditions observed during this inspection. <br />The Carol Ann Pit is located approximately one mile east of Gypsum and accessed from Hwy 6. The site is a <br />112c operation that includes a total of 30 permitted acres. The Division currently holds a financial warranty <br />amount of $77,900.00 for this site. The Division will review the reclamation costs for this site in order to <br />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. <br />Most of the affected area was marked by posts and fencing that was clearly visible and adequate to delineate the <br />affected area boundary. The west permit boundary along Spring Creek, however, was not marked. This was <br />the area of concern regarding the proposed change to the Reclamation Plan. The landowner has requested that <br />the north -south trending ridge along Spring Creek and the west side of the permit area be partially removed in <br />order to improve accessibility to that portion of the property. Due to the lack of boundary markers in this area, <br />it was unclear during this inspection whether or not the permit boundary would need to be extended further west <br />in order to allow for this change to the Reclamation Plan. <br />The portion of the permit area east of the access road has been mined out and mostly reclaimed. The reclaimed <br />slopes appeared stable and no steeper than 3H:1 V. The area had been seeded and was being harvested for hay <br />during this inspection. Some overburden and topsoil stockpiles were still located around the perimeter of this <br />area. <br />The area west of the access road has also been mined out and was undergoing reclamation. Final grading of the <br />pit slopes had commenced. Most of the slopes around the west pit area had been graded to near final grade, <br />except for the south highwall where near vertical slopes still remained. <br />A scale house and scale were still located at the site. <br />Noxious weeds were not observed at the site during this inspection. <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 />