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OBSERVATIONS <br />PERMIT #: M- 2006 -085 <br />INSPECTOR'S INITIALS: SJR <br />INSPECTION DATE: March 20, 2012 <br />This was a normal monitoring inspection of the Leone Gravel Pit #2; permit number M- 2006 -085. The site is <br />located about eight miles west of the town of Trinidad, Colorado in Las Animas County. I, Stephanie Reigh of <br />the Colorado Division of Reclamation, Mining and safety conducted the inspection. Mr. Frank Leone and <br />Wayne Leone of Leone Sand and Gravel, LLC. accompanied me on the inspection. <br />The permit area for this site is 180 acres with 20 acres of maximum allowed disturbance. A road leads from <br />Highway 160 south into the permit area. Prior to issuance of this permit, an excavation existed in the south <br />east portion of the site. At the time this site was permitted, one CIG (Colorado Interstate Gasline) gas line ran <br />through the mine site. Since then, CIG has installed two other lines within the permit area. The operator <br />appears to be maintaining the proper set -backs (50 feet) from the various gas lines. An access road crosses <br />over the gas line, but is elevated 18" above the line. <br />Ten to twelve acres has been back filled and graded to a 3:1 slope, topsoiled and reseeded according to Mr. <br />Leone. All overburden and topsoil stock piles appear to be stable. There is a crusher on site, water truck for <br />dust suppression, and various other loaders and excavators on site. <br />Fuel is stored on site and properly stored with the required berm and or double walled tanks. On the access <br />road there is a scale for both material from the pit and weigh in for cattle. <br />This operation appears to be in compliance with the approved mine plan. <br />Page 2 of 5 <br />