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The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Mike Erker was present on behalf of the Operator. The Kula Gravel Pit is located in Morgan County, <br />approximately 1 mile north of Fort Morgan, Colorado. The mine operates under a 110 Construction Limited <br />Impact Reclamation Permit and is permitted for 9.2 acres. The approved post- mining land use is wildlife <br />habitat. <br />Financial Warranty: <br />The Division currently holds a financial warranty in the amount of $11,891. This amount has been determined <br />to be sufficient to complete reclamation. <br />Gen. Compliance With Mine Plan: <br />No mining was occurring at the time of the inspection; no equipment was present onsite. According to the <br />Operator, the site has been inactive since 2005. Construction Materials Rule 1.13.5 states that if the Operator <br />plans to, or does, temporarily cease production of the mining operation for 180 days or more, the Operator <br />must file a Notice of Temporary Cessation in writing, to the Division. The failure to file a Notice of Temporary <br />Cessation has been cited as problem and will require corrective action by the Operator; please see the first <br />page of this report for additional information. The Notice of Temporary Cessation shall include the following: <br />a) the date of cessation <br />b) the reasons for non - production or cessation of the mining operation <br />c) a plan for resumption of mining <br />d) the measures taken to comply with reclamation requirements and /or other activities related to the <br />performance standards of Section 3.1 while the mine is in Temporary Cessation <br />e) demonstration that the existing financial warranty is adequate to cover the reclamation liability <br />Reclamation Success: <br />The Division traversed the pit with a Trimble GeoXT GPS unit during the inspection; the pit was found to be 4.1 <br />acres in size. The Operator has graded the pit slopes to 3H:1V or flatter along the north, east and west sides of <br />the pit. The southern pit wall has not been reclaimed and is at a slope of 1H:1V. Construction Materials Rule <br />3.1.5(7) requires that slopes be no steeper than 3H:1V from five feet above to ten feet below the expected <br />water line. The southern pit wall will need to be reclaimed to a grade of 3H:1V or less. The shoreline is stable <br />and did not show any signs of erosion. <br />Signs and Markers: <br />The permit sign was posted at the site entrance and the boundary of the affected area was clearly delineated <br />per Rule 3.1.12. <br />This concluded the inspection. <br />OBSERVATIONS <br />PERMIT #: M -1985 -200 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: February 27, 2012 <br />Page 2 of 4 <br />