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OBSERVATIONS <br />PERMIT #: M- 2006 -075 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: September 8, 2011 <br />The Overlook Mine, File No. M- 2006 -075, was inspected by Peter Hays with the Division of Reclamation <br />Mining and Safety (Division) as part of the Division's monitoring inspection program. Mr. Kyle Harris with <br />Granby Realty Holdings, LLC was contacted prior to the inspection but was unable to be present during the <br />inspection. The last monitoring inspection by the Division was on June 21, 2007. <br />Financial Warranty: <br />The Division currently holds a financial warranty in the amount of $57,000, which is adequate to reclaim the <br />site based on the inspection observations. <br />Gen. Compliance With Mine Plan: <br />The site was inactive during the inspection and according to the annual reports submitted by the operator has <br />not been mined since 2009. The pit floor contained several processed material stockpiles, mining equipment, <br />recycled concrete and asphalt stockpiles, construction debris and equipment and imported (end- dumped) <br />material stockpiles. The pit floor daylights to the south and southwest, the east and west highwalls have been <br />regraded to 3H:1V and the active highwall is located at the north end of the pit floor. The north highwall was <br />nearly vertical and measured to be 35 feet high. <br />The Division suggests the operator remove the construction debris and imported material stockpiles and <br />recommends the amount of recycled asphalt and concrete stored at the site be kept to a minimum. The <br />imported material cannot be used as backfill material and must be removed from the site prior to the start of <br />final reclamation. <br />The pit floor perimeter was GPS surveyed with a Trimble Geo XT by the Division. A map indicating the result of <br />the GPS survey is attached. <br />Reclamation Success: <br />No reclamation activity has begun at the site. The approved reclamation plan for the site states reclamation <br />will not be concurrent with mining activities. Noxious weeds including common mullein and Canada thistle <br />and evidence of weed control spraying were observed during the inspection. <br />Sediment Control: <br />Erosion gullies were observed at the intersection of the access road and the pit floor. The operator has placed <br />straw waddles to prevent the erosion from becoming worse. The Division recommends the operator <br />reevaluate the current sediment control structures for effectiveness and repair the current erosion gullies. <br />Signs and Markers: <br />The mine sign and permit boundary markers were observed, as required by Rule 3.1.12. All mining <br />disturbances were contained within the permit boundaries. <br />Storm Water MGT Plan: <br />The pit floor was retaining stormwater in several locations. The apparent source of the water was the recent <br />rainfall in the area. The water appeared to be seeping though the gravel pit floor. <br />Page 2 of 4 <br />