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The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). There were no representatives from Coulson Excavating Company, Inc. present during the <br />inspection. The Stroh Pit is located approximately 3 miles east of Loveland, CO. The site is accessible from a <br />private drive off of the 1 -25 Frontage Road. The permitted acreage encompasses 119 acres and the approved <br />post- mining land use is developed water resource. <br />The Division received a request for a Surety Reduction on October 6, 2011. The Division sent out notices <br />regarding the Surety Reduction request to the owners of record of the affected land, the Larimer County <br />Commissioners and to the Big Thompson Conservation District on October 11, 2011 as required by <br />Construction Materials Rule 4.17.2. The Division did not receive any written comments or objections to the <br />release request. <br />Mining at the Stroh Pit has not commenced; the site is currently used as pasture for grazing cattle. Prior to the <br />commencement of mining the Operator will need to obtain the necessary permits from Larimer County. The <br />Division currently holds a financial warranty in the amount of $145,500. Construction Materials Rule 4.2.1(4) <br />states that in any single year during the life of the permit, the amount of required Financial Warranties shall <br />not exceed the estimated cost of fully reclaiming all lands to be affected in said year, plus all lands affected in <br />previous permit years and not fully reclaimed. Therefore, the Division will reduce the amount of the financial <br />warranty to $1,000 until such time as mining commences. Notice of the Division's decision regarding the <br />Surety Reduction request will be sent under separate cover. <br />This concluded the inspection. <br />OBSERVATIONS <br />PERMIT #: M- 2002 -078 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: November 3, 2011 <br />Page 2 of 3 <br />