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OBSERVATIONS <br />PERMIT #: M- 2012 -036 <br />INSPECTOR'S INITIALS: TCW <br />INSPECTION DATE: September 19, 2012 <br />This was a pre- operation inspection conducted by TC Wait of DRMS. The mine operator was informed of the <br />inspection, but was not present at the time of the pre- operation inspection. The site is located about .5 miles <br />west of Hasty. Post -mine land use for this site is rangeland. The proposed permit area is approximately 320 <br />acres. <br />At the time of the inspection, the site was dry and had recently been used for cattle grazing. The notice sign <br />was posted on the fence. The site is largely dry grassland. A powerline runs through the northern part of the <br />site. This utility is not indicated on the Exhibit C maps. The mine plan indicates that a 25 -ft setback from this <br />utility will be used. This utility line and setback should be added to the Exhibit C maps. <br />General site topography slopes to the south and west from a hill in the northeastern part of the site. The mine <br />plan indicates that the site will be mined in three 80 -acre phases with a processing area and asphalt plant of <br />approximately 10 acres in the northwestern corner of the permit area. The mine pit will be about 30 feet <br />deep, and will be graded to a 3:1 final slope before being topsoiled and seeded for reclamation. <br />There are structures that may be impacted by mining operations, including fences, the county road, and <br />overhead powerline. The Operator has agreements with the owners of these structures. <br />Page 2 of 4 <br />