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OBSERVATIONS <br />PERMIT #: M- 1981 -022 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: January 29, 2013 <br />The inspection was conducted by Michael Cunningham and Tyler O'Donnell of the Division of Reclamation, <br />Mining and Safety (Division). Larry Johnson and Mike Duster of Connell Resources, Inc. were also present for <br />the inspection. The Glass Gravel Pit is located 1/2 mile north of Fort Collins, Colorado. The site is permitted for <br />15.4 acres and the post- mining land use is recreation. The ground was covered with several inches of snow at <br />the time of the inspection. <br />On December 14, 2012, the Division received a request for a reduction of the financial warranty amount. As <br />required by Rule 4.17.2, the Division sent notice of the request for a financial warranty reduction to all owners <br />of record to the affected land, the Larimer County Commissioner, the Fort Collins Conservation District and <br />the State Engineer's Office. The Division did not receive any objections from the noticed parties. <br />The affected area is clearly delineated by a fence as required by Rule 3.1.12. The permit sign was not posted at <br />the site entrance; this has been cited as a problem and will require corrective action by the Operator. The <br />Glass Gravel Pit is currently in final reclamation; mining last occurred in 2005. The Operator is in the process of <br />backfilling an area of exposed groundwater in the southeast portion of the mine site. The material which is <br />being backfilled into the area of exposed groundwater is imported from off -site; the Operator has submitted <br />an affidavit certifying that the material is clean and inert as required by Rule 3.1.5(9). The Operator has placed <br />stockpiles the backfill material on the west side of the pond. The Division observed minor amounts of refuse in <br />the stockpiles including plastic hoses and plastic fencing. Most plastic is inert and will not produce acid or toxic <br />substances; however, the Operator should take care to ensure that this material does not end up being <br />backfilled. Under Amendment No. 2, the Operator committed to stopping the transport of any material which <br />contains excessive amounts of debris. The presence of refuse in the backfill material has been cited as a <br />problem and will require corrective action by the Operator. <br />During the inspection the Division traversed the area of exposed groundwater with a Trimble Juno 3B GPS <br />unit. The Division confirmed the Operator's finding that the area of exposed groundwater is approximately <br />1.67 acres in size. The pit is approximately 14 ft. deep and will require 37,720 cubic yards of material to <br />complete backfilling. Upon completion of backfilling, topsoil will be replaced and the site will be seeded <br />according to the Reclamation Plan. <br />Currently the Division holds a financial warranty in the amount of $148,500.00; this amount was calculated as <br />part of the approval of Amendment No. 2. The Operator has requested a reduction of the financial warranty to <br />$116,700.00. The Division will calculate the cost to complete reclamation at the site; notice of the Division's <br />decision regarding the request for a financial warranty reduction will be sent under separate cover. <br />This concluded the inspection. <br />Page 2 of 4 <br />