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OBSERVATIONS <br />PERMIT #: M -1981 -309 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: December 13, 2011 <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Mason King, the operator, was also present for the inspection. The V.F. Smith Pit #5 is located <br />approximately 3.5 miles west of Cope, Colorado. The site is permitted for 9.90 acres and the post- mining land <br />use is rangeland. <br />Financial Warranty: <br />The Division currently holds a financial warranty in the amount of $7,849. Based on the observations made <br />during this inspection, the financial warranty is adequate to complete reclamation. <br />Hydrologic Balance: <br />The Arikaree River, an ephemeral stream, flanks the east side of the pit. During a previous inspection, the <br />Division noted that groundwater was exposed within the pit. The Operator backfilled the bottom of the pit to <br />two feet above the static groundwater level. The Division did not observe any groundwater within the pit <br />during this inspection. In addition, the Arickaree River was not flowing. It appears that exposed groundwater <br />within the pit is no longer an issue. <br />Gen. Compliance With Mine Plan: <br />Mining at the V.F. Smith Pit #5 commenced in the south end of the site; the direction of mining is from south <br />to north. To date, the Operator has disturbed approximately 4.5 acres of the site. Sand and gravel is pushed up <br />and out of the north side of the pit, where it is stockpiled. <br />Signs and Markers: <br />The permit sign was missing from the site entrance. This has been cited as a problem and will require <br />corrective action by the Operator; please see the first page of this report for additional information. <br />Construction Materials Rule 3.1.12 requires the Operator to post a sign, which shall be clearly visible from the <br />access road, with the following information: <br />a) the name of the Operator <br />b) a statement that a reclamation permit for the operation has been issued by the Colorado Mined Land <br />Reclamation Board <br />c) the permit number. <br />The affected area was clearly delineated by fence lines and monuments. <br />This concluded the inspection. <br />Page 2 of 4 <br />