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OBSERVATIONS <br />PERMIT #: M- 1985 -170 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: February 1, 2012 <br />This inspection was conducted as part of the Division of Reclamation, Mining and Safety's <br />(Division) normal monitoring program. T.J. Blake and Fred Cummings, representing the <br />Operator, were present during this inspection. Photographs are included with this report in order <br />to illustrate some of the conditions observed during this inspection. <br />The BLM Burnt Shale Pit is located approximately 19 miles north of Loma and accessed from <br />Highway 139. The site is a 110c operation that includes a total of 3.3 permitted acres. <br />Adequate mine identification signage was noted at the entrance to the site in accordance with <br />Rule 3.1.12(1). <br />During this inspection, there was some uncertainty as to where the permit area boundaries were <br />actually located. An attempt had been made by the Operator to mark the permit boundary in <br />accordance with Rule 3.1.12(2), but there seemed to be some discrepancy between the marked <br />area and the approved permit area shown on Exhibit C of the permit application. As a result, it <br />was unclear if the entire mining disturbance had been contained within the approved affected <br />area. <br />The active mining face is located in the west portion of the permit area. The highwall consists of <br />two levels. The lower cut is approximately 50 -60 feet high. Above this, a bench has been cut <br />below the upper highwall, which is approximately 30 feet high. Mined slopes at the site range <br />from approximately 1H: 1 V to near vertical. Some evidence of rock fall into the pit area was <br />observed. A small stockpile and screen were located at base of the highwall in the south part of <br />the site. <br />No other problems or violations were noted during this inspection. <br />Responses to this inspection report should be directed to Dustin Czapla at the Division of <br />Reclamation, Mining and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, <br />Grand Junction, Colorado 81501, phone number (970) 243 -6299. <br />Inspection Contact Address <br />Jeremy Lucero <br />Colorado Division of Highways <br />222 South 6th Street, Room 317 <br />Grand Junction, CO <br />81501 <br />Cc: <br />T.J. Blake <br />Colorado Department of Transportation <br />606 South 9` Street <br />Grand Junction, CO <br />81501 <br />Page 2 of 5 <br />