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PERMIT #: M- 1978 -056 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: December 12, 2013 <br />The Division currently holds a financial warranty in the amount of $300,000.00, which appears adequate to <br />complete reclamation based on the observations from this inspection. The approved post- mining land use for <br />the site is general agriculture. The Operator plans to submit an amendment in the future to change the post <br />mine land use to developed water resource. The Operator has dedicated water shares to account for the long <br />term augmentation requirement for the exposed groundwater. <br />The site was active during the inspection. Processed material was observed leaving the site by truck. The on- <br />site concrete batch plant and sand and gravel processing plant were observed during the inspection. Material <br />for processing is imported from the adjacent Western Sugar site. No active mining excavation was observed at <br />the site. The mining excavation and dewatering of Tract B observed during the last inspection has ended and <br />the tract has been allowed to fill with water. <br />The site was impacted by the recent flood event in the region. Flood waters from the Poudre River entered <br />the site at the designed flood control spillway located in Tract D. The concrete spillway was destroyed by the <br />flood waters due to head - cutting. The Operator stated the remnants of the spillway are in the Tract D pit. The <br />spillway flood damage was observed during the inspection. The Operator stated they intend to replace the <br />concrete spillway with earthwork. A temporary berm was observed during the inspection. <br />The spillway was required under the Durham Pit Flood Control Mitigation Plan (FCMP). The FCMP was <br />required by the Mined Land Reclamation Board's Order dated October 27, 2004. The Board Order was the <br />result of an objection received during the amendment (AM -01) public comment period. The objection was in <br />regard to potential flood impact to the adjacent land due to the mining activity. The FCMP was approved <br />under a separate technical revision by the Division. The spillway was incorporated into the Conditional Letter <br />of Map Revision (CLOMR) which was approved by Weld County and FEMA. As cited as a problem requiring <br />corrective action by the Operator on the first page, the Division will require the Operator to reconstruct the <br />spillway to the approved construction drawings and submit an engineering certification and as -built drawings, <br />if required, for the rebuilt spillway. <br />The Operator may submit a technical revision proposing an alternative design for the approved FCMP. The <br />revised FCMP must meet the requirements of the October 27, 2004 Board Order, be approvable by Weld <br />County and FEMA and be submitted as a technical revision to the permit per Rule 1.9. <br />Photographs taken during the inspection are attached. <br />Inspection Contact Address <br />Mr. Chris Varra <br />Varra Companies, Inc. <br />8120 Gage Street <br />Frederick, CO 80516 <br />Cc: Tom Kaldenbach, DRMS <br />Page 2 of 5 <br />