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OBSERVATIONS <br />PERMIT #: M -1980 -245 <br />INSPECTOR'S INITIALS: BMK <br />INSPECTION DATE: August 2, 2012 <br />1) The Division conducted a monitoring inspection of the site on 8/2/12. The site is a clay mining <br />operation located in Douglas County, approximately 1 mile south of Waterton Colorado. Present <br />during the inspection was Jason McGraw of General Shale. <br />2) Permit sign was properly posted at the access to the property. Permit boundary markers were <br />properly displayed. The permit area covers 65.90 acres of which 56 acres can be affected. <br />3) The entire affected area was walked and inspected. Pit high walls were stable. The Division observed <br />some noxious weeds along the south side of the reclaimed area during the inspection. The operator <br />has an approved noxious weed control plan in place for the site and plans to implement the control <br />plan this fall. <br />4) All the drainage from the affected area is captured within the permit area through a sediment control <br />plan that is in place. The operator also has in place a water treatment facility outside of the permit <br />area, which treats water from old adits. <br />5) The current financial warranty in the amount of $236,538.00 is deemed adequate at this time. The <br />operation is in compliance with the approved reclamation plan. <br />Page 2 of 4 <br />