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This was a Succession of Operator (SO) inspection conducted by DRMS at the Hall Irwin Baseline Resource <br />site. This site is located near the intersection of WCR 2 (Baseline Road) and WCR23 immediately northwest of <br />Brighton in Weld County. There are 209.6 acres currently permitted at this 112c site. The inspection was <br />conducted by Eric Scott of DRMS. The DRMS representative met with permittee representative Mark Johnson <br />of Bestway Concrete at the site office entrance at approximately 0845. DRMS noted that mining activity was <br />taking place according to the approved mining plan at the time of the inspection. <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 />OBSERVATIONS <br />PERMIT #: M- 1997 -058 <br />INSPECTOR'S INITIALS: ECS <br />INSPECTION DATE: June 27, 2012 <br />Page 2 of 2 <br />