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PERMIT #: M -1998 -013 <br />INSPECTOR'S INITIALS: ECS <br />INSPECTION DATE: June 27, 2012 <br />OBSERVATIONS <br />This was a Succession of Operator (SO) inspection conducted by DRMS at the Hall Irwin "The Shores" site. <br />There are 309.8 acres currently permitted at this 112c site. The inspection was conducted by Eric Scott of <br />DRMS. The DRMS representative traveled to the site with permittee representative Mark Johnson of Bestway <br />Concrete at approximately 0930. DRMS noted that mining activity was taking place according to the approved <br />mining plan at the time of the inspection. The only issue noted during the inspection that will require <br />immediate attention was the presence of Tamarisk along the shorelines of the water bodies. Tamarisk is a listed <br />noxious species and will need to be eliminated from the permit area. <br />On May 18, 2012 an SO was requested by the permittee to change the name of the permittee from Hall Irwin <br />Corporation to Bestway Concrete Company. Option B was chosen, and a bond of the same amount was <br />supposed to be submitted by the new operator, however the replacement bond has not yet been provided. On <br />June 27, 2012 DRMS conducted an inspection of the site and confirmed that no bond increase was required, <br />however, the SO will not be final until a replacement bond for the previous bond amount is provided by the <br />"new" permittee — Bestway Concrete Company. <br />Please contact DRMS minerals group bonding specialist Barbara Coria at 303 - 866 -3567 x8148 with any <br />bonding questions. It is possible that the requirement for the "new" bond may be satisfied with a name - change <br />rider from the current bonding company for the existing bond. <br />Inspection Contact Address <br />Mark Johnson <br />Bestway Concrete Company <br />301 Centennial Dr. <br />Milliken, CO 80543 <br />GENERAL INSPECTION TOPICS <br />The following list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each <br />AR) RECORDS----------------------------- - - - - -- Y (FN) FINANCIAL WARRANTY-- - - - - -- Y (RD)ROADS ------------------ Y <br />) HYDROLOGIC BALANCE------- - - - - -- Y (BG) BACKFILL & GRADING---- - - - - -- Y (EX) EXPLOSIVES--- - - - - -- NA <br />PROCESSING WASTE/TAILING - - -- NA (SF) PROCESSING FACILITIES- - - - - -- Y (TS) TOPSOIL---------- - - - - -- Y <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE----------- - - - - -- Y (RV) REVEGETATION - - -- PB <br />SIGNS AND MARKERS----------- - - - - -- Y (SP) STORM WATER MGT PLAN - - -- NA (SB) COMPLETE INSP - - -- Y <br />OVERBURDEN/DEV. WASTE--- - - - - -- NA (SC) EROSION /SEDIMENTATION - -- Y (RS) RECL PLAN /COMP -- Y <br />T) ACID OR TOXIC MATERIALS- - - - - -- NA (OD) OFF -SITE DAMAGE------------ - - - -NA (ST) STIPULATIONS- - - - - -- NA <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Pa-c 2 of 2 <br />