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OBSERVATIONS <br />PERMIT #: M- 2006 -054 <br />INSPECTOR'S INITIALS: TCW <br />INSPECTION DATE: August 28, 2012 <br />This was a normal monitoring inspection conducted by TC Wait of DRMS. Mr. Ross Peterson from Carder Inc. <br />represented the operator during the site visit. The site is located about 2.5 miles northwest of Manzanola, <br />north of the Arkansas River. Post -mine land use for this site is rangeland. The permit area is approximately 98 <br />acres with 20 acres of allowed disturbed area. <br />At the time of the inspection, the site was dry. The site includes two access roads that lead to a terrace. No <br />permit sign was posted, and the permit boundaries were not marked. There are stockpiled materials south of <br />the permitted area adjacent to the southern permit boundary. Mr. Peterson explained that those stockpiles <br />belong to Lafarge and the surface owner of that property and were not part of the Ordway Pit operations. <br />The topsoil stockpiles are located on the north side of the mine. The topsoil appears stable with sparse <br />volunteer vegetation growth. Two stockpiles of material were located in the mine. The sand stockpile along <br />the southern boundary is estimated to be about 65 -68 thousand cubic yards; the stockpile of chips is <br />estimated to be 12 -15 thousand cubic yards. Mr. Peterson said most of the past year operations has been <br />hauling and not mining. <br />Mining will progress westward as the demand requires. It appears that the mine is being graded following <br />excavation, but as of yet no portion has been reclaimed. Some of the disturbed area has weed growth. The <br />Operator should have a weed control plan in affect to keep noxious weeds, such as tamarisk, and other weeds <br />that could inhibit desired vegetation growth from establishing. <br />Signs and Markers: <br />At the time of the site visit, no permit sign or boundary markers were in place (Rule 3.1.12). Delineation of <br />permit boundaries is particularly important since another operator is working adjacent to the permit area. <br />Page 2 of 4 <br />