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Roads: <br />The internal haul roads were exempted from affected area under Acreage Reduction - 01. <br />This concluded the inspection. <br />PERMIT #: M- 1985 -210 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: January 26, 2012 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Douglas Bachli of Rocky Road Investments was also present for the inspection. The Rocky Road <br />Quarry is located 4 miles west of Loveland in Larimer County, Colorado. The site is permitted for 106.5 acres <br />with a maximum allowed disturbance of 25 acres. The approved post- mining land use is rangeland. <br />Financial Warranty: <br />The Division currently holds a financial warranty in the amount of $57,224.56, which has been determined to <br />be sufficient to complete reclamation. <br />Gen. Compliance With Mine Plan: <br />The Rocky Road Quarry is divided into a North and South Quarry; mining is currently confined to the North <br />Quarry. The primary area of extraction is located at the southern end of the North Quarry in AL - 6 and <br />encompasses approximately 8.65 acres. The sandstone is removed by hand and front -end loaders; no <br />explosives are used. The mining method produces little waste and results in minimal highwall areas. One small <br />highwall section was noted in AL -6; however, the highwall is temporary and will be reduced as mining <br />progresses to the north. The remainder of the affected area is utilized for storage and processing. <br />Off-site Damage: <br />All disturbance was found to be within the permit boundary. The Operator has done a commendable job in <br />preventing cast -off from the northern, southern and western edges of the ridge. <br />Revegetation: <br />The Rocky Road Quarry has two reclamation areas: RL -1 and RL -2. Together these areas account for <br />approximately 2.12 acres of the permit area. Both areas are stable and the vegetation is thriving; tree <br />establishment is doing exceptionally well in RL -2. <br />Signs and Markers: <br />The permit sign was posted at the site entrance and the boundary of the affected land was clearly delineated <br />per Rule 3.1.12. <br />Permit Stipulations: <br />Stipulation No. 2 requires that the affected area not exceed 25 acres in size. According to an aerial survey <br />conducted by the Operator and submitted with the 2011 Annual Report, the total affected area is 16.53 acres. <br />The Division verified that the current affected area is less than 25 acres. All affected area is confined to the <br />North Quarry; mining has not commenced in the South Quarry. <br />Topsoil: <br />Topsoil is screened from the sandstone rubble using a grizzly screener. The remaining sandstone rubble is <br />stockpiled and sold for rip -rap. The topsoil is currently stockpiled in E -7 of Affected Land - 06 until it is needed <br />for reclamation. <br />Page 2 of 4 <br />