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Inspection Contact Address <br />Mrs. Anne Johnson <br />Lafarge West, Inc. <br />10170 Church Ranch Way, Ste. 200 <br />Westminster, CO 80021 <br />Cc: Tom Kaldenbach; DRMS <br />PERMIT #: M- 2003 -091 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: October 6, 2011 <br />Financial Warranty: <br />The Division currently holds a financial warranty in the amount of $408,000, which is adequate to reclaim the <br />site based on the inspection observations. <br />Gen. Compliance With Mine Plan: <br />Mining activities began at the site approximately 2 -3 weeks ago. The southern portion of Phase 1 located in <br />the eastern half of the site has been stripped of topsoil and overburden. Topsoil was used to construct visual <br />berms along Weld County Road 20 1/2. Two scraper placed stockpiles were located in the middle of the site. <br />The eastern stockpile consisted of overburden and the western stockpile consisted of additional topsoil. The <br />stockpiles were not seeded at the time of the inspection, but appeared stable. Sand and gravel extraction is <br />not expected to start for another 2 years. The area will need to be dewatered for approximately 6 months <br />prior to excavation and the conveyor crossing above CR 201/2 needs to be constructed. <br />As noted in the previous inspection report, the Smith and Emmons Ditch is located on the western half of <br />Phase 2 and runs north and south through the permit area. According to the approved mining plan, Lafarge <br />committed to relocating the ditch prior to mining and construct the new ditch no later than December 31, <br />2007 per the "Agreement to Modify Ditch and Ditch Easement ". The Division cited this as a problem in the <br />previous inspection report. In response to the problem, Lafarge stated "Once Lafarge commences mining on <br />this site, a new Ditch Relocation agreement will be signed and distributed to the DRMS." Please refer to the <br />letter dated July 7, 2009 from Mr. Sean Frisch with Lafarge West, Inc. to the Division. This inspection was <br />limited to the Phase 1 disturbance, therefore the Division did not verify if the ditch has been relocated. As <br />noted above, Lafarge must verify the ditch relocation and provide a copy of the new agreement between <br />Lafarge and the Smith and Emmons Ditch Company within 30 days of the inspection. <br />The required 50 foot offset from Idaho Creek was not verified during the inspection, however offset stakes <br />were observed and Mr. Felmlee stated he was aware of the offset requirement. The approved mining plan <br />requires the highwall adjacent to Idaho Creek be mined at a 3:1 slope to comply with the stability <br />requirements of the permit. <br />Signs and Markers: <br />The mine sign and permit boundary markers, as required by Rule 3.1.12, were not observed during the <br />inspection. However, they were noted during the previous inspection. Lafarge indicated the north boundary <br />of Phase 1 would be fenced soon to separate the oil well site from the mining site. All mining disturbances <br />were contained within the permit boundaries. <br />Page 2 of 4 <br />