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PERMIT #: M- 2008 -080 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: April 7, 2014 <br />OBSERVATIONS <br />The Journey Venture Pit was inspected by Peter Hays with the Division of Reclamation, Mining and Safety <br />(Division /DRMS) in response to a citizen complaint (CT -01) received on March 28, 2014 from Cari Grayvill via <br />the Colorado Department of Public Health and Environment (CDPHE) incident reporting line. Mr. Chris Leone <br />with Journey Ventures was present during the inspection. <br />The incident report (complaint) indicated mine waste and a porta -potty were placed right next to the seep <br />ditch, the mining company was engaging in on -site fueling and was hauling in what appeared to be Bentonite <br />mud. The email message received from CDPHE also stated the Operator began hauling material offsite <br />without all of the onsite and offsite improvements being in place per the improvements agreement which is <br />part of the Weld County Special Review Permit (SRP). <br />The mine site was inactively mining during the inspection, however evidence of recent mining activity was <br />observed. Approximately, 4 acres for the 8.65 acres within Phase 2 of the Mine Plan have been disturbed by <br />mining activity. A processing plant and product stockpiles were observed on the pit floor. No groundwater <br />was observed during the inspection. The current highwall was estimated from 5 to 20 feet in height along the <br />east, south and west side of the southern portion of Phase 2. <br />No reclamation activities were observed during the inspection. A small stockpile of topsoil was observed in <br />the northeast corner of Phase 2. Topsoil was also observed at the base of the highwall in several areas. It <br />appeared this was caused by the Operator not stripping sufficient area in advance of the mining activity. Mr. <br />Leone stated the topsoil would be salvaged from the pit floor, stockpiled and adequate area would be stripped <br />ahead of mining in the future. <br />The Division holds a financial warranty in the amount of $40,381, which is adequate to reclaim the site based <br />on this inspection. <br />A double lined fuel tank was observed during the inspection. An earthen berm partially surrounded the tank. <br />Seep Ditch — porta -potty and mine waste <br />The porta -potty and mine waste (stockpiles) were located more than 25 feet from the seep ditch, which the <br />Operator stated was the required offset. No evidence of seep ditch impacts from the stockpiles or porta -potty <br />were observed during the inspection. The pit has an active stormwater permit issued by the CDPHE. <br />On -site fueling <br />The Operator stated during the permitting process with the Division a Spill Prevention Control and <br />Countermeasure (SPCC) plan was issued for the site. The on -site fuel tank was double lined and bermed, <br />which appeared to be in compliance with the SPCC requirements. <br />Bentonite Mud <br />The Division did not observe evidence of Bentonite Mud at the site during the inspection. The temporary <br />storage of offsite materials is allowed by the Division. <br />Page 2 of 4 <br />