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OBSERVATIONS <br />PERMIT #: M -1985 -211 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: January 30, 2012 <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Judy Sprague and Adam Fulford of Arkins Park Stone Corp. were also present for the inspection. The <br />Berthoud Pink Quarry is located approximately 7.5 miles west of Berthoud, Colorado. The site is permitted for <br />9.9 acres and the post- mining land use is rangeland. <br />Financial Warranty: <br />The Division currently holds a financial warranty in the amount of $12,500; the financial warranty was last <br />calculated in 2000. The Division is required to hold a Financial Warranty in an amount sufficient to complete <br />reclamation of affected lands per C.R.S. 34- 32.5- 117(4)(b)(I). Since the total disturbance has increased since <br />the last Financial Warranty calculation, the Division will recalculate the Financial Warranty for this site in <br />accordance with Rule 4.1.2(4). Notice of an increase in the Financial Warranty will be sent under separate <br />cover. <br />Gen. Compliance With Mine Plan: <br />The Berthoud Pink Quarry is divided into a North Quarry and a South Quarry; the South Quarry is also referred <br />to as the Gold Stain Quarry. The two quarries are connected by a haul road that is approximately 1,500 ft. in <br />length. The site was inactive at the time of the inspection. According to the 2011 Annual Report, the Berthoud <br />Pink Quarry was operated for 7 weeks during 2010. The Operator stated that product stockpiles were <br />periodically removed during 2011. The original permit application stated the affected lands were to be used <br />less than 180 days per year. The Division is currently reviewing the status of sites which operate less than 180 <br />days per year. The Operator will be notified under separate cover of any changes to the Division's policy <br />regarding sites which are operated intermittently. <br />Topsoil and overburden has been stockpiled and placed at the east edge of the permit boundary to form a <br />working deck, which is utilized for storage of product. Most of the North and South Quarries have been <br />disturbed and it appears that no reclamation has been performed. The ridge which is being quarried has an <br />easterly aspect and is generally at a 3H:1V slope. The face of the slope contains a substantial amount of <br />sandstone rubble. Some of the material may be saleable; however, the Division does not consider this material <br />to be product until it has been removed from the slope and stockpiled. <br />Signs and Markers: <br />The permit sign was posted at the entrance of the site and the boundary of the affected land was clearly <br />delineated around the North Quarry. However, the South Quarry lacked boundary monuments. This has been <br />cited as a problem and will require corrective action by the Operator; please see the first page of this report <br />for additional information. <br />This concluded the inspection. <br />Page 2 of 4 <br />