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OBSERVATIONS <br />PERMIT #: M- 1991 -035 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: February 22, 2013 <br />The Bluestone North site was inspected by Peter Hays with the Division of Reclamation, Mining and Safety <br />(Division) in response to the Operator's submittal of Technical Revision #3 (TR -03). Mr. Steven Brown with <br />Lafarge West, Inc. and Mr. Rick Smith with Arnold's Custom Seeding were present during the inspection. <br />The Operator submitted the technical revision on January 23, 2013 to modify the final layout to facilitate the <br />initial steps necessary to prepare the land for future, post reclamation inclusion in the Rocky Flats National <br />Wildlife Refuge. The site was mostly covered in snow due to a recent storm, which prevented the Division <br />from completely accessing the condition of the site. The Division approved TR -03 on February 22, 2013, <br />however additional clarification on the final layout of the site will be required prior to any future partial or full <br />warranty release requests by the Operator. The Division currently holds a financial warranty of $423,800, <br />which appears adequate to reclaim the site based on the observations from this inspection. <br />The Bluestone North site is roughly divided into three areas: the processing plant area in the northwest <br />corner, the washed fines pond area in the eastern half and pit in the southwest corner. <br />Processing Plant Area: <br />The processing plant area has been regraded extensively. The remaining sections of the processing plant, <br />building and scale house noted during the previous inspection have been removed from the site. The <br />previously observed stockpiles have been removed or graded into the site. The Operator stated the concrete <br />slabs associate with the building and plant were broken up and used as backfill material in this section of the <br />site. The Operator must comply with the requirements of Rule 3.1.5(9) for the concrete backfill prior to any <br />future warranty release request consideration by the Division. <br />A large open -water lake is located north of the former processing plant area. The maps submitted by the <br />Operator indicate the groundwater exposure occurred prior to 1981. Prior to any future warranty release <br />request consideration by the Division, the Operator must demonstrate compliance with the Colorado Division <br />of Water Resources (DWR) for this open water lake. <br />Map C -101 submitted by the Operator for this technical revision indicates the topsoil berm located adjacent to <br />the western permit boundary will remain unless otherwise needed. The Operator stated during the inspection <br />the U.S. Department of Energy — Office of Legacy Management (DOE) wants the berm to remain as a visual <br />screen. The Operator must demonstrate sufficient topsoil is available on the site to reclaim the site in <br />accordance with the approved reclamation plan if the topsoil berm is not used for reclamation. Additionally, <br />the Operator must submit proof from the DOE demonstrating the DOE wishes to leave the berm in place. <br />Washed Fines Area: <br />In the technical revision #2 submittal, the Operator revised the mining and reclamation plans for the site. The <br />revised reclamation plan requires 2 feet of fill material be placed over geotextile material to stabilize the <br />washed fines ponds, due to the variable moisture content and grain size, and to attain positive drainage off of <br />the washed fines areas. The geotextile requirement was not specifically addressed in TR -03 and must be <br />clarified by the Operator prior to Division consideration of any future release requests. Additionally, proof of <br />compliance for the potential stormwater and groundwater exposed in the wash fines ponds will be required <br />from the DWR and Colorado Department of Public Health and Environment (CDPHE). The Operator stated the <br />Page 2 of 5 <br />