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OBSERVATIONS <br />PERMIT #: M- 2001 -097 <br />INSPECTOR'S INITIALS: SJR <br />INSPECTION DATE: February 23, 2012 <br />This was a normal monitoring inspection of the Fort Lyon State Pit No. 1, DRMS file number M- 2001 -097. This <br />site is located approximately 4 miles northeast of Mc Clave, Colorado in Bent County. I, Stephanie Reigh of the <br />Colorado Division of Reclamation, Mining and Safety conducted the inspection. Mr. Manuel Torres of Fort <br />Lyon Canal Company accompanied me on the inspection. <br />The proper mine identification sign was in place. The permit boundaries were clearly marked with survey <br />stakes with aluminum cap. The site consists of 44.5 acres, but only 7 acres is currently disturbed. <br />The current excavation is located in the western portion of the permit area. The site was not active at the <br />time of inspection and there was no equipment at the site. Mining consists of excavators digging to a depth of <br />2 -3 feet of limestone. The ideal limestone is large blocks to line the Fort Lyon Canal. There were several <br />stockpiles in the main pit floor. Water was also present in the southwest corner of the pit. The water was <br />from snow melt, not groundwater. <br />All other activities and completed work at the time of inspection appeared to follow the guidelines and <br />regulations set forth by the state and in the mining and reclamation plans for the pit. <br />Page 2 of 4 <br />