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This inspection was conducted by DRMS representative Eric Scott in response to an acreage reduction request <br />received by DRMS from Holcim on May 25, 2012. Holcim requested the release of approximately 446 acres of <br />the northern end of the permit and approximately 80 acres at the south end of the permit. The permit area <br />surrounding the CKD disposal area and surrounding a body of exposed water was not considered for release at <br />this time. DRMS was accompanied on this inspection by Holcim representative Mike Toelle. <br />During the inspection it was noted that the reclamation landscaping appeared to be stable and that vegetation <br />was establishing well, although it was still thin in some areas. However, some variability in vegetation density <br />would be expected over an area this size. The vegetation was also highly stressed due to the prevailing drought <br />conditions at the time of the inspection, and would likely appear much more robust during a more "normal" <br />growing season. Larimer County employees were observed on site conducting weed control activities during <br />the inspection. Very few weeds were observed during the inspection. <br />Several areas of surface water were observed within the permit area due to the configuration of the land after <br />mining of the limestone beds. It is very likely that some of the areas are a result of pre -1981 activities, and <br />some are likely only retained runoff, not exposed groundwater, as they showed evidence of drying up almost <br />completely at the time of the inspection. One area (not under consideration for release at this time) is likely at <br />least influenced by groundwater as the water levels appeared to be very stable. <br />Although reclamation landscaping and vegetation appeared to be adequate in the areas requested for release, <br />The State Engineer's Office - Division of Water Resources (SEO) has objected to the release until the issue of <br />the surface water bodies on site has been clarified and resolved. Therefore, DRMS must suspend any release <br />approval decision until Holcim has satisfied the SEO requirements for the permitted area, and can provide <br />documentation of this to DRMS. By rule, DRMS has only 30 days after the date of the inspection to approve a <br />release request. <br />Inspection Contact Address <br />Mike Toelle <br />Holcim (US) Inc. <br />3500 Highway 120 <br />Florence, CO 81226 <br />OBSERVATIONS <br />PERMIT #: M- 1977 -348 <br />INSPECTOR'S INITIALS: ECS <br />INSPECTION DATE: June 26, 2012 <br />Page 2 of 4 <br />