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PERMIT #: M- 1999 -120 <br />INSPECTOR'S INITIALS: ECS <br />INSPECTION DATE: October 16, 2012 <br />OBSERVATIONS <br />This was a "pre -op" inspection for an amendment to an active 112c sand and gravel operation conducted by <br />Eric Scott of DRMS for the Ft. Lupton Sand & Gravel Pit site. DRMS met with Lynn Mayer Shults of L.G. <br />Everist on site. <br />AM02 will increase the permitted acreage of this site to just over 1008 acres by incorporating the adjacent <br />Lupton Meadows site and including several new surrounding parcels. AM02 was initially submitted on <br />February 24, 2012, but the original amendment application was amended twice by the permittee as new parcels <br />were purchased and incorporated into the affected area. <br />At the time of this inspection, the activity on site appeared to be in compliance with the approved mining and <br />reclamation plans. One issue that will need to be addressed (as identified on the first page of this report) will be <br />to place new permanent markers to identify the full extent of the new permit boundary. Due to the extent and <br />projected life -span of the amended permit it will be imperative for the permittee, and DRMS, to be able to <br />easily identify the entire permit boundary now and for a considerable time in the future. Boundary markers <br />should be easily identifiable and placed frequently enough so that they are visible from at least one marker to <br />the next in each direction. <br />At this time the adequacy issues identified in the amendment application have been addressed, and as soon as <br />the reclamation bond calculations can be finalized and agreed upon, DRMS will be able to approve AM02. <br />Inspection Contact Address <br />Lynn Mayer - Shults <br />L.G. Everist, Inc. <br />7321 E. 88th Ave., Ste 200 <br />Henderson, CO 80640 <br />GENERAL INSPECTION TOPICS <br />The following list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each <br />RECORDS----------------------------- - - - - -- Y (FN) FINANCIAL WARRANTY-- - - - - -- Y (RD) ROADS------------ - - - - -- Y <br />HYDROLOGIC BALANCE------- - - - - -- Y (BG) BACKFILL & GRADING---- - - - - -- Y (EX) EXPLOSIVES--- - - - - -- NA <br />PROCESSING WASTE/TAILING - - -- NA (SF) PROCESSING FACILITIES- - - - - -- Y (TS) TOPSOIL---------- - - - - -- Y <br />GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE----------- - - - - -- Y (RV) REVEGETATION - - -- Y <br />SIGNS AND MARKERS----------- - - - - -- PB (SP) STORM WATER MGT PLAN - - -- NA (SB) COMPLETE INSP - - -- Y <br />OVERBURDEN/DEV. WASTE--- - - - - -- NA (SC) EROSION /SEDIMENTATION - -- Y (RS) RECL PLAN /COMP -- Y <br />T) ACID OR TOXIC MATERIALS- - - - - -- Y (OD) OFF -SITE DAMAGE------------ - - - -NA (ST) STIPULATIONS- - - - - -- NA <br />Y = Inspected and found in comuliance / N = Not insnected / NA = Not anolicahle to this operation / PR = Problem cited <br />Page 2 of 2 <br />