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PERMIT #: M- 1979 -191 <br />INSPECTOR'S INITIALS: ECS <br />INSPECTION DATE: July 17, 2013 <br />OBSERVATIONS <br />This was an inspection conducted by Eric Scott of DRMS associated with a Succession of Operator application submitted <br />by Martin Marietta Materials (MMM) for the Three Bells Pit, currently operated by Lafarge. DRMS was accompanied by <br />Martin Marietta representative Julie Mikulas for this inspection. The primary purpose of this inspection was to recalculate <br />the required reclamation bond as requested by MMM in the Succession of Operators package, so that the required bond is <br />known before the succession process is completed. As discussed onsite, the bond will be increased to cover the liability <br />of the areas of exposed groundwater as required by the State Engineer's Office. MMM requested that the bond be <br />recalculated based on the additional cost of enclosing these areas of exposed groundwater with a slurry wall ($3 sq /ft <br />based on perimeter distance and average depth to shale for the area to be enclosed). Based on the average depth to shale <br />of 20' for the site, a perimeter of 3950' for the northern area and 8235' for the southern area, the required additional bond <br />is $731,100. As stated in the SO paperwork sent separately, the total revised bond amount of $1,489,000 will need to be <br />posted by MMM no later than 60 days from the date of that notification for the SO application to be finalized. <br />Several other items were observed and discussed that will require additional attention by MMM if/when the SO is <br />finalized. The site ID sign will need to be slightly modified to comply with the requirements, and the old ID sign <br />removed. Two old recharge ponds are located along the south border of the northern parcel that will need to be backfilled <br />to avoid exposing additional groundwater area (Photos 3 and 4). The three larger recharge ponds located on the western <br />permit area may remain as they are required to be able to satisfy the requirements of the current SWSP. Noxious weed <br />controls will need to be implemented as stated on the first page of this inspection report. Lastly and most importantly, a <br />permit amendment will need to be submitted within 6 months of the date of this report to change the post - mining land use <br />to accommodate the change to lined water storage, and to revise the permit boundary to incorporate all disturbances <br />associated with mining activity. There are two small areas (approx 1.1 acre total) along the perimeter of the northern area <br />(one a topsoil stockpile and the other the location of the site trailer) that are outside of the current permit boundary. <br />DRMS acknowledges that these disturbances appear to be shown and approved on the 1979 mining plan; therefore the <br />Division will not pursue enforcement for area affected outside the permit at this time. However, as previously stated, the <br />Division will require a permit amendment be submitted within 6 months to change the post mining land use, and to <br />modify the permit boundary as appropriate to incorporate all disturbed areas. If the amendment to change post mining <br />land use and permit boundary is still outstanding after six months the Division maYbegin the enforcement process for <br />disturbance of areas outside the permit boundary and failure to comply with the approved reclamation plan. As noted by <br />MMM, the previous annual report maps also incorrectly depict the permit boundary in the northeast corner of the southern <br />area. This issue should also be resolved and corrected in any future submittals to the Division. <br />There are also areas within the current permit boundary (along the north east side of the northern area, and the northeast <br />corner of the southern area) that are that have not been, and likely will not be, mined due to property ownership issues. <br />These areas may be released at any time as unaffected acreage through the normal acreage release process when the SO <br />has been finalized. <br />DRMS looks forward to working cooperatively with MMM to resolve these issues as soon as the SO for the site has been <br />finalized. <br />Inspection Contact Address <br />Julie Mikulas <br />Lafarge West, Inc. <br />1800 N Taft Hill Road <br />Fort Collins, CO 80521 <br />Page 2 of 4 <br />