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PERMIT #: M- 2000 -050 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: July 15, 2013 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). The Operator was not present for the inspection. The Broken Spear Pit is located 7 miles north of <br />Genoa, Colorado. The site is permitted for 9.9 acres and the post- mining land use is rangeland. <br />On February 1, 2013, the Division received a Successor of Operators application to transfer the Reclamation <br />permit for the Broken Spear Pit from Gail and Millie Allen to Bain Farms LLC. The application was called <br />complete May 13, 2013. The Applicants chose to maintain their right to a decision within 30 days from the <br />filing date; a replacement financial warranty in the amount of $10,000.00 was posted with the Division. <br />The purpose of the inspection was to determine if the financial warranty remained adequate to complete <br />reclamation at the site. The permit sign was posted at the site entrance and the boundary of the affected area <br />was clearly delineated by monuments. No mining was taking place at the time ofthe inspection. The Operator <br />is currently mining within the confluence of the Curie Creek and the Arickaree River, both of which are <br />ephemeral streams and were dry at the time of the inspection. Excavation takes place within the channel and <br />there is no processing of the material. Product stockpiles are located outside of the channel. The existing <br />excavation does not exceed four feet in depth. <br />The Division performed a complete bond calculation (copy enclosed) and determined that the financial <br />warranty amount of $10,000.00 remains adequate to complete reclamation. No problems were noted. <br />This concluded the inspection. <br />Inspection Contact Address <br />Mark Bain <br />Bain Farms LLC <br />1417 6th Street <br />Limon, CO 80828 <br />Enclosure <br />Page 2 of 2 <br />