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PERMIT #: M- 1991 -133 <br />INSPECTOR'S INITIALS: WHE <br />INSPECTION DATE: November 19, 2013 <br />INSPECTION TOPIC: Financial Warranty <br />PROBLEM: The Division has reviewed the current cost of reclamation totaling $24,407.62. Therefore, the <br />$16,465.41 financial warranty is not adequate to reclaim the site in accordance with the approved reclamation <br />plan and applicable requirements of the Act and Rules. This is a failure to maintain the proper financial <br />warranty amount to complete reclamation of the affected lands pursuant to section 34- 32.5- 117(4)(b), C.R.S. <br />CORRECTIVE ACTIONS: Pursuant to Rule 4.2.1(2), the Operator has 60 days from the date of this report, due <br />May 19, 2014, to provide $7,942.21 additional surety, to ensure a total financial warranty not less than <br />$24,407.62, or advance the reclamation and thereby render the existing financial warranty adequate. <br />CORRECTIVE ACTION DUE DATE: May 19, 2014 <br />OBSERVATIONS <br />This inspection occurred as part of the Division's monitoring program for permitted operations. The Valdez <br />Gravel Mine is approved for 30 acres affected lands for the extraction of construction materials. Affected <br />lands will be reclaimed to support rangeland post- mining land use. The Division holds $16,465.41 financial <br />warranty. This report is accompanied by a Google Earth image, modified to illustrate the approximate permit <br />boundary and locations of photographs taken during the inspection; five photographs; and an updated <br />reclamation cost estimation totaling $24,407.62. <br />A mine identification sign was posted nearby the mine entrance. Public access to the affected lands is <br />controlled by locked gate. The permit boundary was delineated by steel T- posts. Mining and reclamation <br />activities were dormant and appeared compliant with the conditions of the permit. <br />As illustrated on the enclosed Google Earth image, the mining activity has advanced to the west permit <br />boundary. Approximately 400 lineal feet of the west highwall has been reduced to its final configuration, <br />3H:1V, and stabilized with vegetative cover. Near vertical highwalls were observed for portions of the south, <br />west and north pit slopes, indicating recent expansion of the pit area in those directions. Approximately 600 <br />lineal feet of near vertical highwall was observed. Remaining pit slopes ranged from 1HAV to 2HAV, <br />approximately 2,400 lineal feet, and did not appear to have been recently disturbed. Pit depth was estimated <br />at 15 feet below native ground elevation. A few willows were observed at isolated locations along the east <br />side of the pit floor but there was no standing water or evidence of exposed ground water within the pit. <br />Affected lands were estimated at 15 acres. <br />The Division previously inspected the site on March 31, 2009. At that time the Division estimated the affected <br />lands at approximately 10 acres and verified the adequacy of the existing $16,465.41 financial warranty. <br />However, as noted above, the affected lands appear to have increased to approximately 15 acres. Therefore, <br />pursuant to Rule 4.2.1, the Division updated its reclamation cost estimation to address current site conditions. <br />Notice to Increase the Financial Warranty <br />Based upon observations made during the inspection and recorded in this report, the Division has reviewed <br />the current cost of reclamation totaling $24,407.62. Please find enclosed 12 pages of summary, drawing and <br />work sheets utilized by the Division to calculate the current cost of reclamation. Therefore, the existing <br />financial warranty, in the amount of $16,465.41, is insufficient to ensure the completion of reclamation. The <br />Division has noted a problem regarding the financial warranty and has imposed a corrective action deadline <br />whereby the problem must be resolved. Additional details of the corrective action and deadline are provided <br />Page 2 of 3 <br />