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Hydrologic Balance: <br />Ditches along roads on the site were in good shape <br />OBSERVATIONS <br />This inspection was conducted by Tom Kaldenbach of DRMS. The operator was represented by Albert Frei, Jr. <br />and Ben Frei of Albert Frei and Sons, and Steve O'Brian of Environment, Inc. The ground was dry and the <br />weather was clear. <br />Financial Warranty: <br />The operator currently has $742,000 of bond on deposit. This amount was based on the reclamation cost <br />estimate that DRMS prepared in 2002 (AM -08). The AM -08 cost estimate assumed there are no more than 50- <br />acres at any one time that need backfilling, grading, topsoil replacement, and revegetation. The 50 -acre figure <br />was established in TR -05. During the current inspection it appeared the site has no more than 50 acres that <br />lack backfilling, grading, topsoil replacement, and revegetation. The cumulative disturbance to -date is <br />approximately 122 acres, with much of this having been at least partially reclaimed. The $742,000 of bond on <br />deposit equates to $14,840 per acre of disturbance for 50 acres of disturbance, and equates to $6,082 per <br />acre for 122 acres of disturbance. In either case, the amount of bond on deposit is sufficient to reclaim the <br />site. <br />Gen. Compliance With Mine Plan: <br />Mining continues in Stage I of the seven -stage mine plan, as the plan is described in Exhibit E of the permit <br />application (1983 application, modified in AM -08). Total disturbance currently is approximately 122 acres, <br />with much of this having been at least partially reclaimed. Mining is active on the approximate 55 -acre <br />working face that extends north to south on the eastern side of the quarry. Upper slopes in this area have <br />been reclaimed (see Photo 1, below). Mining is advancing toward the north and the east, in accordance with <br />the approved mine plan. <br />Off -site Damage: <br />There were no signs of off -site damage around the perimeter of the site. <br />Sediment Control: <br />There were no signs of excessive erosion on the site. <br />Support Facilities On -site: <br />Fuel tanks were in containment structures. <br />PERMIT #: M- 1983 -033 <br />INSPECTOR'S INITIALS: TAK <br />INSPECTION DATE: November 28, 2011 <br />Slides and Other Damage: <br />There was no ground water seepage evident on the working face. The highwalls and benches appeared <br />stable. <br />Signs and Markers: <br />A mine i.d. sign was properly displayed at the mine entrance gate. The affected area was adequately marked. <br />Page 2 of 4 <br />