2013-11-27_INSPECTION - M1985026

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PERMIT #: M -1985 -026 INSPECTOR'S INITIALS: PSH INSPECTION DATE: November 7, 2013 OBSERVATIONS The Challenger Pit was inspected by Peter Hays with the Division of Reclamation, Mining and Safety (Division /DRMS) to follow -up on unresolved problems and evaluate the site for flood damage. The site was previously inspected by the Division on September 26, 2012. Mr. Richard Coulson with Coulson Excavating Company, Inc. was present during the inspection. The site was moderately impacted by the recent flood event. Flood waters from the Big Thompson River overtopped and eroded the west shoreline of Pond 1 in several areas. Pond 2, which is clay lined appeared to be unaffected by the flooding. The west shoreline of Pond 3 was eroded by the flooding. The Operator stated the damaged shorelines would be repaired this winter and concrete riprap would be placed at the southwest shoreline of Pond 2. This area has been prone to erosion since reclamation activities at the site were completed according to the Operator. If concrete riprap is imported to the site, the Division will require the Operator to comply with the requirements of Rule 3.1.5(9). Three problems were cited during the last inspection for lack of exposed groundwater compliance, final shoreline grading and lack compliance with the approved Reclamation Plan. The Division approved Technical Revision No. 5 on April 5, 2013 for the site. The revision provided an alternative reclamation plan to install a clay liner at the two unlined ponds at the site. The Division currently holds a financial warranty in the amount of $218,637.60, which accounts for the potential cost to install the clay liners. The Challenger Pit is now in compliance with the Division's April 30, 2010 letter, which required all sand and gravel mining Operators to comply with the requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations for the protection of water resources. The Operator failed to respond to the problems related to compliance with the final reclamation plan and shoreline grading since the last inspection. Due to the flooding at the site, most of the previously observed out of compliance shorelines will require repair and resloping and the reclamation plan might need to be revised following the completion of the repair work. Therefore, the Division has abated the problems cited in the previous inspection report. The Division recommends all slopes are graded to the required 3H:1V slope and surveyed while the appropriate equipment is at the site to repair the damaged slopes. Phase 1 of the site was not observed during the inspection. The Operator stated this southern portion of the site was not mined and not part of the permit. Based on the Mining Plan Map submitted with the amendment application in 1999, Phase 1 is included in the permit and must be reclaimed according to the approved reclamation plan for the site. A copy of the Mining Plan Map is attached. Phase 2 consists of 3 ponds surrounded by pastureland on the west and south sides and a residential development on the north and west sides. Pond 1(14 acres) and Pond 3 (3 acres) are unlined groundwater lakes. Pond 2 (2.4 acres) is a clay lined pond. The Division does not have evidence the liner for Pond 2 has been approved by the Office of the State Engineer. This proof must be submitted by the Operator prior to any future release request consideration by the Division. The residential development has constructed boat docks within the permit boundary. The construction of the docks is not approved in the current reclamation plan. The Operator must remove these structures or update the reclamation plan to include these structures into the plan prior to any future release request consideration by the Division. Page 2 of 5