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OBSERVATIONS <br />PERMIT #: M- 2000 -050 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: September 22, 2011 <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Mark Bain, the current Operator, was also present for the inspection. The Broken Spear Pit is <br />located 7 miles north of Genoa, Colorado. The site is permitted for 9.9 acres and the post- mining land use is <br />rangeland. <br />Financial Warranty: <br />The Division holds a financial warranty in the amount of $10,000. The total disturbed area is Tess than 2 acres <br />and the amount of the financial warranty is sufficient to complete reclamation. <br />Hydrologic Balance: <br />Both the Arickaree River and Currie Creek are ephemeral; they were not flowing at the time of the inspection. <br />The Division observed a small pool of water within the portion of the channel which has been recently <br />excavated; the water was presumed to be from recent precipitation events as the depth of the excavation is <br />too shallow to intercept groundwater. <br />Gen. Compliance With Mine Plan: <br />The Broken Spear Pit is located at the confluence of the North Fork of the Arickaree River and Currie Creek. <br />The excavation of sand is primarily taking place in the channel of the Arickaree River; no mining was occurring <br />during the inspection. The Operator pushes sand from within the channel of the Arickaree River to the north <br />bank, where the material is loaded into trucks; several stockpiles of sand were observed near the north bank. <br />Signs and Markers: <br />The permit sign was posted at the site entrance; however, the sign was faded and was not legible. This has <br />been cited as a problem and will require corrective action by the Operator. The four corners of the permit <br />boundary were clearly delineated by wood posts as required by Construction Materials Rule 3.1.12. <br />This concluded the inspection. <br />Page 2 of 4 <br />