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OBSERVATIONS <br />PERMIT #: M -1980 -120 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: February 1, 2013 <br />The Koenig Pit was inspected by Peter Hays and Tyler O'Donnell with the Division of Reclamation, Mining and <br />Safety (Division /DRMS) as part of the Division's monitoring inspection program. The site was previously <br />inspected by the Division on April 15, 2009. Mr. Clay Kimmi with Weld County Public Work Department was <br />scheduled to be present during the inspection, however due to a scheduling error by the Division was not <br />present during the inspection. <br />Complete Inspection: <br />The site was inactive during the inspection, but recent stockpile removal activity was report by Weld County. <br />A processing area, two material stockpiles and a loader were observed in the northeast corner of the site. No <br />processing equipment was present. Mining in the west half of the site is complete. The mining of the east half <br />of the site is proceeding from south to north. The 2012 Annual Report submitted by the Operator accurately <br />depicted the status of the site. All of the pit slopes appeared to be 3H:1V and erosion features were observed <br />on the slopes, typically below the anticipated waterline. The site vegetation consisted of annual weeds. No <br />noxious weeds were observed during the inspection. <br />Hydrologic Balance: <br />The post mine land use for the site is developed water resource. The slurry wall was been installed and <br />approved by the Division of Water Resources. Northern Colorado Water Conservancy District was using the <br />pit for water storage at the time of the inspection. An inlet structure was observed in the southeast corner of <br />the site and a dewatering pump with piping to the Meadow Island Ditch No. 1 was observed in the northwest <br />corner of the site. <br />Signs and Markers: <br />A mine sign was observed and the site was delineated with fence on the north, east and south sides and <br />monuments on the west side as required by Rule 3.1.12. <br />No problems were noted during the inspection. Photographs taken during the inspection are attached. <br />Inspection Contact Address <br />Mr. Clay Kimmi <br />Weld County <br />P.O. Box 758 <br />Greeley, CO 80632 <br />Cc: Tom Kaldenbach, DRMS <br />Tyler O'Donnell, DRMS <br />Page 2 of 3 <br />