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OBSERVATIONS <br />PERMIT #: M- 1976 -018 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: November 3, 2011 <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Lee Belmore of North Weld Gravel was also present for the inspection. The North Weld Gravel pit is <br />located 4 miles northeast of Pierce, Colorado. The site is permitted for 80 acres; the maximum allowed <br />disturbed acreage is 20 acres. The post- mining land use is cropland. <br />The Division received a Surety Reduction request on September 8, 2011. The Division sent out notices <br />regarding the release request to the owners of record of the affected land, the Weld County Commissioners <br />and to the West Greeley Conservation District on September 19, 2011 as required by Construction Materials <br />Rule 4.17.2. The Division did not receive any written comments or objections to the release request. <br />Gen. Compliance With Mine Plan: <br />The topsoil has been stripped from entire area within Phase 1 and has been stockpiled along the perimeter of <br />the pit. The topsoil stockpiles were stable and did not show any signs of erosion. The Operator is currently <br />mining Phase 1; mining is progressing to the east. The pit is approximately 10ft deep and the operator <br />anticipates mining to a total depth of 17ft. The pit walls have mostly been mined at a 1H:1V slope; the slope of <br />the northern pit wall ranges between 2H:1V and 3H:1V. The Division noted several stockpiles of 3/4" minus <br />road base near the western edge of the site. The Division traversed the disturbed area with a GeoXT GPS unit. <br />The data collected in the field were downloaded into GPS Pathfinder Office 3.10 software. The total disturbed <br />area is 20 acres and the pit is 13.6 acres. As noted above, the maximum allowed disturbed acreage is 20 acres. <br />Therefore, the Operator may not expand the operation beyond the currently disturbed area without first <br />reclaiming Phase 1 or posting an increased financial warranty to allow for mining of subsequent phases. <br />Support Facilities On -site: <br />The Operator set up a portable office and a truck scale near the entrance of the site; these structures were <br />identified on the original Mining Plan Map and have been approved. The scale is set on top of a permanent <br />concrete foundation; the cost for demolition of the foundation has been included in the revised financial <br />warranty calculation. <br />Signs and Markers: <br />The permit sign was posted at the entrance to the site and the boundary of the affected area was clearly <br />delineated per the requirements of Rule 3.1.12. <br />Financial Warranty: <br />The Division holds a financial warranty in the amount of $39,000. The current financial warranty amount was <br />calculated following the Division's inspection of the site on April 29, 2010 and is based on a maximum <br />disturbed area of 20 acres. The Operator has requested the financial warranty be reduced by $25,473. <br />Following this inspection the Division calculated the reclamation costs based on the current amount of <br />disturbance and determined the financial warranty amount held by the Division is adequate to complete <br />reclamation of the site. Therefore, the request to reduce the financial warranty will be denied. The Division's <br />financial warranty calculation has been included for your review. Notice of the Division's decision regarding <br />the surety reduction request will be sent under separate cover. <br />This concluded the inspection. <br />Page 2 of 4 <br />