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of Coto COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />y? $ MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866-3567 <br />1876 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: MINE/PROSPECTING ID#: MINERAL: COUNTY: <br />Rough Cut Pit M-2001-033 Sand and gravel Otero <br />INSPECTION TYPE: INSPECTOR(S): INSP. DATE: INSP. TIME: <br />Monitoring Jared L. Ebert March 21, 2011 09:50 <br />OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br />Rough Cut, LLC Keith Tucker 112c - Construction Regular Operation <br />REASON FOR INSPECTION: BOND CALCULATION TYPE: BOND AMOUNT: <br />Normal I&E Program Complete Bond $193,000.00 <br />DATE OF COMPLAINT: POST INSP. CONTACTS: JOINT INSP. AGENCY: <br />NA None None <br />WEATHER: I <br />PECTO S G AXUIRE SIGNATURE DATE: <br />Wind r <br />r March 29, 2011 <br /> <br />The following inspection tonics were identified as having Problems or Possible Violations. OPERATORS <br />SHOULD READ THE FOLLOWING PAGES CAREFULLY IN ORDER TO ASSURE COMPLIANCE <br />WITH THE TERMS OF THE PERMIT AND APPLICABLE RULES AND REGULATIONS. If a <br />Possible Violation is indicated, you will be notified under separate cover as to when the Mined Land <br />Reclamation Board will consider possible enforcement action. <br />1.) INSPECTION TOPIC: Gen. Compliance With Mine Plan (MP) <br />PROBLEM: The Operator is not following the current approved mine plan by affected land beyond the maximum <br />allowed affected land of 35 acres. The current mine plan needs to be updated and clarified pursuant to C.R.S. <br />34-32.5-112 (1)(c)(VI). The operator must provide sufficient information to describe or identify how the <br />operator intends to conduct the operation. <br />CORRECTIVE ACTIONS: The Operator shall submit a Technical Revision as described in the body of the report, <br />with the required $216 revision fee, to update and clarify the current approved mine plan to reflect existing and <br />proposed activities by the corrective action date. <br />CORRECTIVE ACTION DUE DATE: 5/20/11 <br />2.) INSPECTION TOPIC: Backfilling and Grading (BG); and Gen. Compliance With Mine Plan (MP) <br />PROBLEM: The Operator is not following the current approved mine plan by mining a vertical highwall. This is a <br />problem pursuant to C.R.S. 34-32.5-112 (1)(c)(VI). The operator must provide sufficient information to describe <br />or identify how the operator intends to conduct the operation. <br />CORRECTIVE ACTIONS: Grade the highwall to the required 3:1 horizontal to vertical ratio and provide <br />photographic documentation the work has been completed. <br />I le-, ' Page I of 8