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OBSERVATIONS <br />PERMIT #: M -1983 -148 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: February 29, 2012 <br />This inspection is part of the normal monitoring program established by the Colorado Division of Reclamation, Mining, <br />and Safety (Division). The Neil Gravel Pit is a 112c permitted site located south of State Road 348, on 57.5 Road in <br />Montrose County. Norm David, representative for Montrose County the permittee accompanied the inspector on site. <br />The mine identification sign is in place and in compliance with Rule 3.1.12. The sign is located at the entrance to the <br />site. Permit boundaries were noted as fencing along the south and east perimeters, as well as key point t- posts, and <br />signage. <br />Other boundaries are clearly distinguishable due to topography of the crest of the mesa. <br />The site is active. Several pieces of heavy equipment were noted on site. Several trucks were observed hauling sand out <br />and some overburden materials brought in. Numerous stockpiles of processed materials were located throughout the <br />pit area. Mining is progressing along the southern edge of the permit boundary. A small highwall approximately 10 feet <br />in height spans the location of the first excavation lift. <br />Stormwater appears to be being contained on site. Wet conditions were present due to snow and melting. No erosion <br />or sedimentation issues were observed. <br />Reclamation along the north end is progressing. All of the earthwork is complete and the area reseeded. The County is <br />monitoring and depending on germination success is contemplating additional seeding. <br />No fuel storage issues or other hazardous materials were observed. No on -site mining related debris is documented. <br />Mr. David and the inspector discussed a possible pending amendment to include additional areas to the west and south. <br />Also discussed were a few ancillary parcels adjacent to the current permit boundaries were some additional backfilling <br />and road re- alignment is contemplated. It was advised that the operator include these areas in with the amendment in <br />the future. <br />The Annual Report submitted on 01/25/2012 reflects current site disturbances and activities. <br />The inspector observed no problems or violations at this time. <br />The financial warranty requirement is not applicable to local government agencies and therefore not reviewed. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, and Safety, <br />Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970 - 241 -1117. <br />Inspection Contact Address <br />Norm David <br />Montrose County <br />161 S Townsend Ave <br />Montrose, CO 81401 <br />Page 2 of 2 <br />