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REASON FOR INSPECTION: <br />Surety Related <br />BOND CALCULATION TYPE: <br />Complete Bond <br />BOND AMOUNT: <br />$48,000.00 <br />DATE OF COMPLAINT: <br />NA <br />POST INSP. CONTACTS: <br />None <br />JOINT INSP. AGENCY: <br />None <br />WEATHER: <br />Cloudy <br />IIpPECT S vrU-RE: <br />/� <br />S�GNATURE DATE: <br />`'July 27, 2011 <br />MINE NAME: <br />Valco T Pit <br />M INE/PROSPECTING ID #: <br />- 2004 -043 <br />MINERAL: <br />Sand and gravel <br />COUNTY: <br />Las Animas <br />INSPECTION TYPE: <br />Surety Release Inspection <br />INSPECTOR(S): <br />Jared L. Ebert <br />ISP. DATE: <br />vfuly 26, 2011 <br />INSP. TIME: <br />11:08 <br />OPERATOR: <br />Venable's Construction, Inc./ <br />OPERATOR REPRESENTATIVE: <br />None <br />TYPE OF OPERATION: <br />112c - Construction Regular Operation <br />COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866 -3567 <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 />V <br />The following inspection topics 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 />INSPECTION TOPIC: Financial Warranty <br />POSSIBLE VIOLATION: The Financial Warranty cancelled on July 16, 2011 and was not renewed or replaced by <br />the Operator. This is a possible violation at this time for failure to maintain a financial warranty in good <br />standing for the life of the permit as required by C.R.S. 34 32.5 117(6). <br />CORRECTIVE ACTIONS: An enforcement hearing has been scheduled during the August 10 and 11, 2011 Board <br />Meeting. <br />CORRECTIVE ACTION DUE DATE: 8/10/11 <br />asp., J 13ic <br />Page 1 of 5 <br />