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OBSERVATIONS <br />PERMIT #: M- 1984 -076 <br />INSPECTOR'S INITIALS: BMK <br />INSPECTION DATE: October 29, 2012 <br />1) The Division conducted a monitoring inspection of the site on 10/29/12. The site is a clay mine located <br />10 miles north of Kiowa Colorado. Present during the inspection was Jason McGraw of General Shale. <br />2) No problem was identified during the last inspection conducted on 6/9/2008. The mining area consists <br />of two locations, along the west and east side of the permit boundary. The site is allowed to affect a <br />total of 35 acres at any given time. The total permitted acres is 101.40 acres. At the time of the <br />inspection, the total amount of affected area was approximately 35 acres. The affected area includes <br />mining area, a stockpile storage area, and a sediment control pond along the East side and the access <br />road. The site mines three different clay products. Each product is stockpiled and labeled separately. <br />All the drainage from the affected acres is captured within the pit floor or by the drainage control <br />sediment pond along the east side. <br />3) The entire affected area was walked and inspected. Topsoil stockpiles were stable and sparsely <br />vegetated. No major erosion features were noted. Permit sign and boundary markers were properly <br />posted. There was no noxious weed infestation noted at the time of the inspection. The post mining <br />land use for the site is rangeland. <br />4) In 2008, the Division calculated the required financial warranty, when the site was succeeded by <br />General Shale. The financial warranty was set at $135,807, for a maximum disturbed area of 35 acres. <br />That was the disturbed area noted at that time. No additional acres have been affected since that <br />time. The current financial warranty appears to be adequate at this time. According to Mr. McGraw, <br />the affected area for the site is not expected to increase any time soon. However, before the current <br />affected area is expanded to more than 25 acres, the operator must submit a technical revision to the <br />Division and obtain approval. The technical revision must include the added financial warranty for the <br />expended disturbed area. <br />5) The current operation is in compliance with the mining and reclamation plan. <br />Page 2 of 4 <br />