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OBSERVATIONS <br />PERMIT #: M- 2002 -096 <br />INSPECTOR'S INITIALS: TC1 <br />INSPECTION DATE: January 18, 2012 <br />This was a succession of operator (SO -01) inspection of the Ranch Land Rock Pit #1, DRMS File No. M -2002- <br />096. This site is located approximately 20 miles west of Pueblo, CO on Hwy 96, then north 2 miles and west <br />again 2 miles on a private road. I, Tim Cazier of the Colorado Division of Reclamation Mining and Safety <br />conducted the inspection. Mr. Joe Lamanna and Mr. Tom Newman (representing the Operator) accompanied <br />me on the inspection. The permit was transferred from Ranch Land LLC to Holcim (US) Inc. The successor <br />operator posted the required financial warranty and the permit transfer was approved on November 23, 2011. <br />The Division is required to inspect the site and calculate the required financial warranty 60 days from the date <br />the transfer was complete. <br />Inspection: <br />A permit sign was not posted at the entrance to the site. The absence of the sign is cited as a potential problem. <br />The site was inactive at the time of the inspection. The previous operator (Mr. William Peetz) has several <br />stockpiles of palletized material in the designated staging area. Mr. Lamanna indicated Holcim has an <br />agreement with Mr. Peetz that Mr. Peetz will remove this material this spring. Stockpiles of overburden and <br />topsoil were observed on site (see Photos 1— 3). <br />The Operator has not begun mining the site and the disturbance created by the previous operator appears to be <br />less than the 20 acres of disturbance for which the bond was calculated. Thus, the current financial warranty <br />amount is adequate at this time. Photo 4 shows the limestone strata to be mined and the adjacent Red Creek. <br />Recommendations: <br />The Division recommends Holcim place a permit sign at the gated entrance off State Highway 96, if that <br />location is acceptable to the property owner. <br />Page 2 of 4 <br />