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REASON FOR INSPECTION: <br />Normal I &E Program <br />BOND CALCULATION TYPE: <br />Partial Bond <br />BOND AMOUNT: <br />$1,038,500.00 <br />DATE OF COMPLAINT: <br />NA <br />POST INSP. CONTACTS: <br />None <br />JOINT INSP. AGENCY: <br />None <br />WEATHER: <br />Clear <br />INSPECTOR'S SIGNATURE: <br />i'' <br />SIGNATURE DATE: <br />April 3, 2013 <br />MINE NAME: <br />Daniels Sand Pit 2 <br />MINE/PROSPECTING ID #: <br />M- 1973 - 007 -SG <br />MINERAL: <br />Sand and gravel <br />COUNTY: <br />El Paso <br />INSPECTION TYPE: <br />Monitoring <br />INSPECTOR(S): <br />Berhan M. Keffelew <br />INSP. DATE: <br />February 7, 2013 <br />INSP. TIME: <br />11:00 <br />OPERATOR: <br />Continental Materials Corporation <br />OPERATOR REPRESENTATIVE: <br />Mac Schafer and Andre La Roche <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 />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No problems <br />or possible violations were noted during the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials and/or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic - forming, as identified in the permit. <br />(AR) RECORDS <br />(HB) HYDROLOGIC BALANCE <br />Y (FN) FINANCIAL WARRANTY <br />Y (BG) BACKFILL & GRADING <br />(PW) PROCESSING WASTE/TAILING - - -- NA (SF) PROCESSING FACILITIES <br />(MP) GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE <br />(SM) SIGNS AND MARKERS <br />(ES) OVERBURDEN/DEV. WASTE <br />(AT) ACID OR TOXIC MATERIALS <br />N (RD) ROADS Y <br />Y (EX) EXPLOSIVES NA <br />Y (TS) TOPSOIL Y <br />Y (RV) REVEGETATION - - -- Y <br />Y (SP) STORM WATER MGT PLAN - - -- NA (SB) COMPLETE INSP - - -- NA <br />NA (SC) EROSION /SEDIMENTATION - -- Y (RS) RECL PLAN /COMP -- Y <br />NA (OD) OFF -SITE DAMAGE Y (ST) STIPULATIONS <br />NA <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page 1 of 4 <br />