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Current Stipulations: <br />There are no current stipulations. <br />Bond: <br />OBSERVATIONS <br />PERMIT #: M- 2002 -009 <br />INSPECTOR'S INITIALS: TC1 <br />INSPECTION DATE: April 10, 2012 <br />This was a Succession of Operator (SO) inspection for the purpose of determining if the current financial <br />warranty is adequate. The operator's representative (Rusty Cochran) was present for the inspection. This site is <br />located approximately seven miles southeast of Pueblo, in Pueblo County and adjacent to the Cortner Pit (M- <br />1986 -159) also SO'd to Martin Marietta Materials (MMM). The site is in the uplands south of the St Charles <br />River and well out of the floodplain. <br />Inspection: <br />The site was permitted in 2002 as a 112c operation. The site has never been mined or disturbed (Photos 1 — 4). <br />The original mine plan indicates the access road would be through the adjacent Cortner Pit. There is currently <br />not a gate in the fence between the Beeman Pit area and the Cortner Pit. <br />Records: <br />1) During the previous inspection (February 15, 2011) the operator was cited for not posting a permit sign. <br />The original corrective action due date was 3/30/2011. As no permit sign was during this inspection, the <br />lack of a sign is cited as a problem on page 1 of this inspection report. <br />2) The permit anniversary date is May 20. The operator is current with annual fees and reports through <br />2011. <br />3) This is the second SO for the site. Lafarge SO'd the site from SO Western Mobile Southern, Inc. in <br />2003. <br />The current $62,335 bond is deemed adequate, but should be reviewed after the operation starts mining. <br />Page 2 of 4 <br />