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OBSERVATIONS <br />PERMIT #: M- 2012 -013 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: May 10, 2012 <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Matt Dankers of Blattner Energy, Inc. was also present for the inspection. The Higgins Pit II is <br />located approximately 2.5 miles west of Genoa, Colorado. The proposed permit boundary encompasses 86.02 <br />acres and the proposed post- mining land use is pastureland. <br />This pre - operational inspection was conducted as part of the Division's regular monitoring program. The 112 <br />Construction Materials Reclamation Permit Application was submitted to the Division on April 6, 2012. The <br />application is currently under review and the decision date is July 10, 2012. The Operator currently holds a 110 <br />Materials Reclamation Permit for the Higgins Pit (M- 2012 -006). The Higgins Pit is permitted for 9.9 acres and is <br />encompassed in the proposed permit boundary for the Higgins Pit II. Active mining operations with the <br />proposed Higgins Pit II are occurring in the northeast corner. <br />During the inspection, the Division traversed the site with the Operator. The proposed operation is situated on <br />top of a natural terrace with a southerly aspect and lies immediately north of Highway 70. The permit <br />boundary was easily identifiable and was staked with surveyor's lathe. All stormwater in this area flows to the <br />south through the site. The southern portion of the site contains landforms created through surface runoff. <br />However, it should be noted that the site is stable and contains a healthy cover of prairie vegetation; no <br />noxious weeds were observed. The land is currently utilized by the landowner for grazing; no cattle were <br />present at the time of the inspection. There are no water features present on the site and the proposed depth <br />of excavation will not encounter groundwater. <br />The Operator has created a 200' buffer between the permit boundary and all permanent man -made <br />structures. The Division did not observe any permanent man -made structures within 200' of the permit <br />boundary which would require a damage waiver agreement or stability analysis. <br />The Operator will salvage all available topsoil and will stockpile the topsoil along the perimeter of the permit <br />boundary. Mining will reach depths of approximately 30 - 40 feet. There will be no processing onsite and no <br />fuel will be stored within the permit boundary. There will be no explosives used in this operation. The entire <br />project is expected to last less than one year. Following the completion of mining, the Operator will reclaim <br />the site in accordance with the Reclamation Plan. <br />Based on this inspection, no observations were made that would restrict the approval of this application. This <br />concluded the inspection. <br />Inspection Contact Address <br />Matt Dankers <br />Blattner Energy, Inc. <br />9232 Ballybunion Road <br />Peyton, CO 80831 <br />Page 2 of 2 <br />