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The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Mike Loukonen was present on behalf of Loukonen Bros. Stone. The Lykins Gulch site is located 4 <br />miles south of Lyons, CO. The site is permitted for 9.9 acres and the post- mining land use is rangeland. <br />The permit sign was posted at the site entrance and the boundary of the affected area was clearly delineated <br />with monuments. The 9.9 acre permit area is divided into a north quarry, south quarry, and a storage area. <br />The site was inactive at the time of the inspection. According to the most recent Annual Report, the site was <br />operated less than 180 days in 2011. The Operator informed the Division that mining operations for this site <br />will commence shortly to facilitate a recent order for stone. The Operator was informed that any site which <br />operates less than 180 day per year must file a Notice of Temporary Cessation with the Division pursuant to <br />Rule 1.13.5. <br />The Operator has disturbed approximately 1.75 acres in the north quarry and 0.75 acres in the south quarry; <br />all disturbances were found to be with the permit boundary. The Operator is mining from east to west in both <br />of the quarries. Overburden stockpiles are located at the toe of the excavations and will be spread over the <br />site during final reclamation or crushed and sold as product. <br />The Division currently holds a financial warranty in the amount of $21,000; which is sufficient to reclaim the <br />existing disturbance at the site. <br />This concluded the inspection. <br />Inspection Contact Address <br />Mike Loukonen <br />Loukonen Bros. Stone <br />12993 N. Foothills Hwy <br />Longmont, CO 80503 <br />OBSERVATIONS <br />PERMIT #: M- 2000 -090 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: April 25, 2012 <br />Page 2 of 3 <br />