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PERMIT #: M- 2005 -080 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: October 23, 2013 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Jack Allen of Allen Drilling and Excavating was also present for the inspection. The Allen Pit is <br />located approximately 2.5 miles southeast of Fairplay, Colorado. The site is permitted for 59.5 acres, with a <br />maximum allowed disturbance of 15.8 acres. The commodity of interest is sand and gravel and the post - <br />mining land use is rangeland. <br />The permit sign was posted at the site entrance and the boundary of the affected area was clearly delineated <br />as required by Rule 3.1.12. Active mining operations were not occurring at the time of the inspection. The <br />Operator routinely removes material from the product stockpiles to be used in the concrete batch plant which <br />is located on the western perimeter of the site. The site is being mined in five phases; mining is currently <br />taking place in Phase 2. The material is screened and washed using portable equipment located in the <br />northern portion of Phase 1 and Phase 2. The wash water is piped to a series of settling ponds which are <br />located on the east side of the access road. When the water reaches the lowest of the settling ponds, the <br />water is pumped back to the processing area and is recycled in the wash plant. The Division observed <br />numerous product stockpiles around the process area. Overall, the site was in a neat and orderly condition; <br />the Operator has done an excellent job to minimize disturbance at the site. <br />Hydrologic Balance: <br />The Division observed standing water on the pit floor along the perimeter between Phase 1 and Phase 2. The <br />water was located in a trench with approximate dimensions of 15' w x 100' 1 x 1'd. According to Mr. Allen, the <br />trench was excavated to route water away from the southern portion of Phase 1 and 2 in order to bring the pit <br />floor to final grade and to complete final grading of the pit walls. The top of the trench was approximately 12- <br />14 feet below the elevation of the surrounding area. Based on these observations the Division concluded that <br />the water in the trench was groundwater and not surface runoff. The approved Reclamation Permit clearly <br />states that groundwater will not be exposed at the site. The Reclamation Permit was approved with the <br />stipulation that the Operator maintain a two foot buffer between the lowest depth of mining and the highest <br />groundwater surface at any time during the year. The exposure of groundwater at the site has been cited as a <br />problem and will require corrective action by the Operator; please see the first page of this report for <br />additional information. There is a sufficient amount of material, including wash fines and overburden, <br />available to backfill the trench to eliminate any exposed groundwater. The Operator indicated that an <br />augmentation plan had been obtained from the Office of the State Engineer (SEO) which would allow for the <br />exposure of groundwater. A review of the permit file showed that the Division does not have a copy of the <br />Operator's augmentation plan. If the Operator does have approval through the SEO, a Technical Revision must <br />still be submitted and approved by the Division to modify the Mining Plan to allow for exposed groundwater. <br />Any future exposure of groundwater without the necessary approvals may result in enforcement actions. <br />The Operator has two wells on the property; one well is used to supply water to wash plant and the other well <br />is used to supply water to the concrete batch plant. The Division has copies of well permits on file for the <br />monitoring wells which were used to monitor groundwater levels prior to the commencement of mining. <br />However, the Division does not have any documentation which demonstrates that the monitoring wells were <br />converted by permit for an alternate use. The lack of documentation for the two wells has been cited as a <br />problem and will require corrective action by the Operator; please see the first page of this report for <br />additional information. <br />Page 2 of 5 <br />