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OBSERVATIONS <br />PERMIT #: M- 2003 -070 <br />INSPECTOR'S INITIALS: SJR <br />INSPECTION DATE: January 19, 2012 <br />This was an acreage release (AR) inspection of the Hinds Pit #35, permit number M- 2003 -070. This site is <br />located approximately 3 miles north and 6.5 miles east of Campo, Colorado in Baca County. I, Stephanie Reigh <br />of the Colorado Division of Reclamation, Mining and Safety conducted the Inspection. Mr. Peter Dawson of <br />Baca County accompanied me on the inspection. <br />This site is currently a 112 (c) operation containing 100 acres. They have submitted a conversion application <br />to reduce 57.1 acres to the permit area. The total area will be 42.9 acres once the application is approved. <br />The proper mine identification sign was in place and so were the new permit boundary markers delineating <br />the 42.9 acre permit area. Outside of the 42.9 acre permit area, there was no disturbance. The majority of the <br />area looks like it has not been disturbed in a long time except by cattle grazing. The current vegetation; Blue <br />Grama and side oats were prevalent in the area. <br />The site consists of a large pit excavation surrounded by a dirt road and barbed wire fence. The pit is <br />approximately 35 feet deep with 3:1 horizontal to vertical ratio side slopes or flatter. The Operator pushes the <br />material from the perimeter of the site to the center of the site. By doing this they create gentle pit slopes <br />instead of vertical highwalls. The mined material is piled at the center of the site and is processed. A screener <br />was on site, but no equipment was present at the time of inspection. <br />The northern boundary of the past permit area is to the north of the current disturbed area. Current mining is <br />in the southern part of the permit area and will continue to the east. The permit boundary was walked with a <br />Trimble Geo XT GPs unit. The total acreage and polygon depicting the permit area was exactly 42.9 acres. <br />At this time, the land reduced from the permit area had not been disturbed and the approved mining and <br />reclamation plan are in compliance. <br />Page 2 of 4 <br />