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REASON FOR INSPECTION: <br />Normal I &E Program <br />BOND CALCULATION TYPE: <br />Complete Bond <br />BOND AMOUNT: <br />$22,250.00 <br />DATE OF COMPLAINT: <br />NA <br />POST INSP. CONTACTS: <br />None <br />JOINT INSP. AGENCY: <br />None <br />WEATHER: <br />Cloudy <br />INSPECTOR'S SIGNATURE: <br />SIGNATURE DATE: <br />January 26, 2012 <br />MINE NAME: <br />Schuler Construction Pit # 1 <br />MINE/PROSPECTING ID #: <br />M- 2005 -002 <br />MINERAL: <br />Gravel <br />COUNTY: <br />El Paso <br />INSPECTION TYPE: <br />Surety- Related Inspection <br />INSPECTOR(S): <br />Berhan Keffelew ■ <br />INSP. DATE: <br />January 18, 2012 <br />INSP. TIME: <br />09:40 <br />OPERATOR: <br />Schuler Construction <br />OPERATOR REPR S NTATIVE: <br />Dave Schuler <br />TYPE OF OPERATION: <br />110c - Construction Limited Impact <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 />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 />PROBLEM /POSSIBLE : Problem: Failure to maintain Financial Warranty in Good Standing. Rule 4.1(7) states, <br />"Financial Warranties shall be maintained in good standing for the entire life of any permit issued under the Act <br />and theses Rules." <br />CORRECTIVE ACTIONS: Submit the required warranty no later than 1/31/12 <br />CORRECTIVE ACTION DUE DATE: 1/31/12 <br />Page 1 of 4 <br />