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OBSERVATIONS <br />PERMIT #: M- 2003 -052 <br />INSPECTOR'S INITIALS: SJR <br />INSPECTION DATE: November 22, 2011 <br />This was a monitoring inspection of the Windy Ridge Pit; M- 2003 -052 operated by the Carder Inc. This site is <br />located approximately 35 miles south of Lamar, Colorado in Prowers County. I, Stephanie Reigh of the <br />Colorado Division of Reclamation, Mining and Safety conducted the inspection. Mr. Mike Ausmus, of Carder <br />Inc. accompanied me on the inspection. <br />This is a 320 acre 112c mining operation for sand and gravel. A mine identification sign was not place at the <br />entrance to the mine site. I verbally expressed to Mr. Ausmus that he would need to re -post the mine <br />identification sign and that this request would also be submitted in the Inspection Report. Permit boundaries <br />were all clearly marked. No active mining was taking place at the time of inspection. <br />Topsoil is stockpiled at the eastern extent of the current disturbance, and the majority of the site remains <br />undisturbed. I used a GPS to walk the disturbance area and it was a total of 11.76 acres. In addition, little or <br />no weeds appeared to exist on this site. <br />No fuel was being stored at the mine site. <br />Mr. Greg Emick, the landowner came by near the end of the inspection. He explained that he would <br />be interested in taking over the pit from Carder, Inc. I explained that he would need to work out the <br />details with Carder, Inc and a succession of operator application would need to be submitted. I referred <br />him to the website to obtain a set of Minerals Rules and Regulations. <br />Page 2 of 4 <br />