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OBSERVATIONS <br />PERMIT #: M- 1988 -042 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: October 6, 2011 <br />The Cottonwood Pit, File No. M- 1988 -042, was inspected by Peter Hays with the Division of Reclamation, <br />Mining and Safety (Division) as part of the Division's monitoring inspection program. Mrs. Anne Johnson and <br />Mr. Casey Felmlee with Lafarge West, Inc. were present during the inspection. The site was previously <br />inspected by the Division on June 8, 2007. <br />Financial Warranty: <br />The Division currently holds a reclamation bond in the amount of $421,721.00, which is adequate to reclaim <br />the site based on this inspection. <br />Hydrologic Balance: <br />Lafarge has an agreement with Water Users Association of District No. 6 regarding the exposed groundwater <br />at the Cottonwood Pit. <br />Gen. Compliance With Mine Plan: <br />The Cottonwood Pit was active during this inspection. The 2011 Annual Report submitted by the Lafarge on <br />February 11, 2011 accurately depicted the current mining related disturbance and state of reclamation at the <br />site. The processing plant, scale house and active mining area were contained in mining area CW5. The <br />southern portion of CW5 east of the conveyor is currently being dewatered and mined. The area located west <br />of the conveyor in the southern portion of CW5 will be mined next by Lafarge. CW5 is the final area to be <br />mining at the Cottonwood Pit. The area under the processing plant will be mined at the conclusion of mining <br />activity at the Duckworth Pit located adjacent to the Cottonwood Pit across County Road 20 1/2. <br />The oil and gas well located in Phase 1 in the middle of mining area CW5 was upgraded recently. Seven new <br />wellheads were drilled and the pipeline is being upgraded and relocated by the oil and gas company. The <br />pipeline relocation required Lafarge to move the topsoil stockpile located in the southern portion of CW5 <br />along the eastern boundary. Lafarge will update the mining and reclamation plan maps through the technical <br />revision process once the oil and gas work is completed. <br />The western half of mining area CW4 has approximately 2 -3 feet of gravel resources remaining in the pit floor. <br />Following completion of the mining activity in CW4 and conveyor running east -west across the site will be <br />removed and the material under the conveyor will be mined. <br />Reclamation Success: <br />Reclamation activities are performed concurrently with the mining operation. The former silt ponds in the <br />southeast corner of the site are revegetated and appeared stable. The vegetation between the ponds and on <br />the access roads was sparse. Lafarge stated the sparse areas would be reseeded soon. The regrading and <br />seeding work in mining areas CW3 and CW2 is complete. The slopes were between 3:1 and 4:1 in grade and <br />appeared stable. Additional grading work is required in the southwest corner of mining area CW1 and the <br />north end of mining area CW4, which is scheduled for this winter. The rough grading in the north section of <br />Phase 2 is complete and two silt ponds are constructed in the south section of Phase 2. The recently seeded <br />areas in CW2 and CW3 are dominated by koshia. Common Mullein and teasel were observed during the <br />inspection. The Operator will need to implement the approved weed control plan to eradicate the noxious <br />weeds. Cottonwood and salt cedar trees are being removed from the site by the Operator. <br />Page 2 of 4 <br />