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REASON FOR INSPECTION: <br />High Priority <br />BOND CALCULATION TYPE: <br />Complete Bond <br />BOND AMOUNT: <br />$21,530.00 <br />DATE OF COMPLAINT: <br />NA <br />POST INSP. CONTACTS: <br />None <br />JOINT INSP. AGENCY: <br />None <br />WEATHER: <br />Clear <br />INSPECTOR'S, SIGNATURE: <br />SIGNATURE DATE: <br />August 23, 2011 <br />MINE NAME: <br />Keyah Grande Lodge and Elk Ranch <br />MINE/PROSPECTING ID #: <br />M- 2011 -026 <br />MINERAL: <br />Sand & Gravel <br />COUNTY: <br />Archuleta <br />INSPECTION TYPE: <br />Preoperation Inspection <br />INSPECTOR(S): <br />Kate A. Pickford <br />INSP. DATE: <br />July 27, 2011 <br />INSP. TIME: <br />10:00 <br />OPERATOR: <br />Keyah Grande Lodge and Elk Ranch <br />OPERATOR REPRESENTATIVE: <br />Keefer Rader <br />TYPE OF OPERATION: <br />112c - Construction <br />Regular Operation <br />06 COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />o MINERALS PROGRAM INSPECTION REPORT <br />/876* <br />PHONE: (303) 866 -3567 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />GENERAL INSPECTION TOPICS AUG 2 9 2011 <br />This list identifies the environmental and permit parameters inspected and gives a categorical a <br />fQ8r9151 ARroblems <br />or possible violations were noted during the inspection. The mine operation was found to be in fullgeftlinfs Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materi is and /or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic - forming, as identified in the permit. <br />(AR) RECORDS <br />(HB) HYDROLOGIC BALANCE <br />(PW) PROCESSING WASTE /TAILING - - -- N <br />(MP) GENL MINE PLAN COMPLIANCE- Y <br />(SM) SIGNS AND MARKERS <br />(ES) OVERBURDEN/DEV. WASTE <br />(AT) ACID OR TOXIC MATERIALS <br />Y (FN) FINANCIAL WARRANTY <br />Y (BG) BACKFILL & GRADING <br />(SF) PROCESSING FACILITIES <br />(FW) FISH & WILDLIFE <br />• <br />N (SP) STORM WATER MGT PLAN - - -- N <br />N (SC) EROSION /SEDIMENTATION - -- Y <br />N (OD) OFF -SITE DAMAGE <br />Y (RD) ROADS--------- - - - - -- Y <br />Y (EX) EXPLOSIVES <br />Y (TS) TOPSOIL Y <br />Y (RV) REVEGETATION Y <br />(SB) COMPLETE INSP - - -- <br />N (ST) STIPULATIONS <br />N <br />(RS) RECL PLAN /COMP -- N <br />N <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page l of 4 <br />