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OBSERVATIONS <br />PERMIT #: M- 2002 -020 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: June 21, 2012 <br />This was a pre- operation inspection of the 25 Avenue Site (Poudre Ponds) for Amendment No. 1 (AM -01) <br />conducted by Peter Hays with the Colorado Division of Reclamation, Mining and Safety (Division). Mr. Bill <br />Schenderlein with Blue Earth representing the City of Greeley was present during the inspection. <br />The 112c amendment application package was received by the Division on February 16, 2012 and deemed <br />complete for purposes of filing on April 24, 2012. The current permit amendment application decision date is <br />July 23, 2012. The site is located approximately 1 miles northwest of Greeley, Colorado in Weld County. <br />The required notice signs were observed during the inspection adjacent to 25 Avenue. <br />The proposed amendment area for the 25 Avenue Site is currently included in the Greeley West Pit (File No. <br />1977 -081). The amendment application removes the proposed amendment area from the existing Greeley <br />West Pit permit and adds it to the 25 Avenue Site permit. The remainder of the Greeley West Pit site is <br />unaffected by the proposed amendment. After approval of the 25 Avenue Site amendment, the amendment <br />area will be released from the Greeley West Pit permit and the remaining unaffected area within the Greeley <br />West Pit will be release by the Operator. The Division received a Transfer of Permit and Succession of <br />Operator application on June 6, 2012 requesting the transferring the Greeley West Pit from Lafarge West, Inc. <br />to the City of Greeley. The application was deemed inadequate and the Division is currently waiting for the <br />required information to deem the application complete. <br />The Greeley West Pit was previously inspected by the Division on October 6, 2010. The site appeared <br />unchanged since the last inspection, with the exception of dewatering pumps and hoses in the southeast <br />corners of the two southeast lakes. Mr. Schenderlein stated Hall Irwin, the future mine operator, was <br />planning to begin dewatering the lakes under the current mining permit. It is expected to require several <br />months of pumping to dewater the lakes prior to beginning mining at the site. <br />All man -made structures and utilities appear to have been identified by the Applicant in the permit <br />application, but will need to be added or labeled on Exhibit C. The Mining Plan has been altered since the <br />submittal to accommodate the installation of the future slurry wall due to the current limited offsets around <br />portions of the southwest lakes. The change to the proposed Mine Plan will need to be clarified by the <br />Applicant. The Division will address these issues in the adequacy letter to be mailed under separate cover. No <br />objections to the amendment application were received by the Division during the public comment period. <br />Pre - operation inspection photographs are attached below. <br />Inspection Contact Address <br />Mr. Jim Hall <br />City of Greeley <br />1100 10th St., Suite 300 <br />Greeley, CO 80631 <br />Cc: Tom Kaldenbach, DRMS <br />Bill Schenderlein, Blue Earth <br />Page 2 of 5 <br />