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OBSERVATIONS <br />PERMIT #: M- 1982 -112 <br />INSPECTOR'S INITIALS: BMK <br />INSPECTION DATE: February 29, 2012 <br />1) The Division conducted a monitoring inspection of the site on 2/29/11. The site is a 130 acres, 112 sand and <br />gravel operation located approximately 10 miles north of Elizabeth Colorado in Elbert County. The site was <br />not active at the time of the inspection. Site is mined by Schmidt Construction for the operator. Permit sign <br />posted at the access to the property. A portion of the permit area was covered with snow from the recent <br />storm. However the pit and stockpile areas had minimum snow cover. <br />2) On 9/24/2007, the site was amended to 130 acres by adding 69.2 acres to the existing 61 acres along the <br />east side if the existing permits area. Since the site was amended, no activity has taken place in the <br />amended area. All the activity is limited to the existing pit and stockpile areas. The maximum area allowed <br />to be disturbed under the amended permit is 20 acres. <br />3) A small screen was noted along the south east side of the main stock pile and processing area. A small <br />amount of processed stockpile was also noted along the north side of the pit area. As noted in the annual <br />report only about 1.5 acres of additional disturbance was added during the reporting year. <br />4) The main pit high walls extending east to west were found stable. All the drainage from the affected area is <br />captured with in the pit floor. The small reclaimed area that is expected to be affected once demand picks <br />up was found stable. Since it is adjacent to the amended area it will be affected when and if the operator <br />starts mining in the amended area. <br />5) There is a small wash pond located along the North West side of the permit area was holding a partially <br />frozen water. The water is diverted from the alluvial water of Running Creek located along the North side of <br />the permit area. The operator appeared to be in compliance with the requirement of the exposed ground <br />water rules. The top soil Stockpiles located along the North side of the permit area were found stable. No <br />major erosion features noted. <br />6) The current financial warranty as amended in 2007 for maximum affected acres of 20 is $44,145.00.It is <br />deemed adequate to cover the cost of current affected area. <br />Page 2 of 4 <br />