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PERMIT #: M -1999 -050 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: August 31, 2012 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). The Timnath Connell Pit is located approximately 1 mile south of Timnath, Colorado on the east side <br />of Highway 1 -25. The permitted acreage encompasses 157.6 acres and the Maximum Allowed acreage for <br />disturbance is 67.2 acres. <br />Financial Warranty: <br />The Division currently holds a financial warranty in the amount of $510,198, which remains sufficient to <br />complete reclamation. <br />Hydrologic Balance: <br />The Division observed groundwater in the southeast corner of Phase 1 and at the northern limit of mining <br />within Phase 2. The Operator has a valid well permit and temporary substitute water supply plan (SWSP) <br />which expires on March 31, 2012. The SWSP allows the Operator to expose up to 8 acres of groundwater. <br />Based on the Division's observations, the Operator is in compliance with the SWSP. <br />Gen. Compliance With Mine Plan: <br />There was no mining taking place during the inspection. According to the Operator, no mining has been <br />conducted in the past two years. However, the Operator has a substantial amount of material stockpiled on <br />site which is routinely removed and sold. The Division informed the operator that if mining activity, including <br />removal of stockpiled material, does not occur for 180 days or more, then a Notice of Temporary Cessation <br />would need to be filed with the Division. <br />The asphalt batch plant is located on the south side of the site entrance. All petroleum products are stored in <br />designated containers which are stored off of the ground. The Operator submitted an SPCC plan on January <br />13, 2011. No problems were noted with the batch plant area. <br />The Timnath Connell Pit is divided into three phases. Phase 1 encompasses the asphalt batch plant and the <br />stockpile area and has been mined to completion. Phase 2 is located on the east side of the site, adjacent to <br />County Road 5; mining is currently taking place in Phase 2. Phase 3 will be mined last and is located between <br />Phase 1 and Phase 2. The Operator will relocate the Box Elder Ditch prior to mining Phase 3. Approximately <br />half of Phase 2 has been mined. Topsoil has been stockpiled along the east side of Phase 2; the stockpile was <br />stable and did not show any signs of erosion. The Operator has maintained a setback distance of 35' from the <br />permit boundary. <br />The Division observed a small pile (approx. 10' x 20') of concrete rubble located at the northern mine face in <br />Phase 2. This material contained metal pipe and rebar and plastic sheeting; the material is not inert and may <br />not be used as backfill or otherwise disposed of on site. The presence of this material has been cited as a <br />problem and will require corrective action by the Operator; please see the first page of this report for <br />additional information. <br />Revegetation: <br />The Division noted Russian olive and tamarisk around the west settling pond. A review of the permit file found <br />that the Division does not have an approved Weed Control Plan on file. The presence of noxious weeds on site <br />has been cited as a problem and will require corrective action by the Operator; please see the first page of this <br />report for additional information. <br />Page 2 of 5 <br />