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of <o COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INSPECTION REPORT <br />*, PHONE: (303) 866 -3567 <br />* 1876 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: <br />MINE /PROSPECTING ID #: <br />MINERAL: <br />COUNTY: <br />Wand Pit <br />M- 2010 -007 <br />Sand and Gravel <br />Moffat <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: <br />INSP. TIME: <br />Monitoring <br />Dustin M. Czapla <br />March 28, 2012 <br />11:00 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Northwest Aggregates, Inc. <br />P.J. Nichols <br />I 110c - Construction Limited Impact <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Normal I &E Program <br />Complete Bond <br />$17,300.00 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />U.S.Corps. Of Engineers <br />None <br />WEATHER: <br />P CT 'S GNATURE: <br />SIGNATURE DATE: <br />Clear <br />1 April 11, 2012 <br />-1'/ <br />The following inspection topics were identified as having Problems or Possible Violations. OPERATORS <br />SHOULD READ THE FOLLOWING PAGES CAREFULLY IN ORDER TO ASSURE COMPLIANCE <br />WITH THE TERMS OF THE PERMIT AND APPLICABLE RULES AND REGULATIONS. If a <br />Possible Violation is indicated, you will be notified under separate cover as to when the Mined Land <br />Reclamation Board will consider possible enforcement action. <br />INSPECTION TOPIC: Financial Warranty <br />PROBLEM /POSSIBLE VIOLATION: Problem: The financial warranty is not adequate to reclaim the site in <br />accordance with the approved reclamation plan. This is a failure to maintain the proper financial warranty <br />amount to complete reclamation of the affected lands pursuant to C.R.S. 34- 32.5- 117(4)(b) of the Act. <br />CORRECTIVE ACTIONS: The operator shall submit adequate financial warranty, as determined by the <br />Division. The Division will be sending a separate surety increase notice to the operator regarding the increase of <br />the financial warranty. The operator will have 60 days from the date on the surety increase notice to post the <br />additional financial warranty. <br />CORRECTIVE ACTION DUE DATE: 6/11/12 <br />Page 1 of 7 <br />