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PERMIT#:M-1991-037 <br /> INSPECTOR'S INITIALS:MAC <br /> INSPECTION DATE:May 28,2014 <br /> OBSERVATIONS <br /> The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br /> (Division). Boyd Astemborski was present on behalf of High Speed Mining, LLC. The Katuska Pit is located <br /> approximately 2 miles northwest of Fairplay, Colorado in Park County. The Katuska Pit is permitted for 8 acres <br /> and the post-mining land use is residential. <br /> The Division received a Succession of Operator Application to transfer the Reclamation Permit from Destiny <br /> Mining, LLC to High Speed Mining, LLC on April 4, 2014. The Successor Operator maintained their right to a <br /> decision within 30 days. The Division approved the transfer of the Reclamation Permit on April 28, 2014. The <br /> purpose of the inspection was to determine if the existing financial warranty amount of$5,000 is adequate to <br /> complete reclamation at the Katuska Pit. <br /> The Katuska Pit is a placer operation that is situated on the south side of the South Platte River at an <br /> approximate elevation of 10,300 ft. The permit sign was posted at the site entrance; however, the permit sign <br /> did not contain all of the required information. Per Rule 3.1.12, the permit sign is to contain the name of the <br /> Operator, a statement that a reclamation permit has been issued by the Colorado Mined Land Reclamation <br /> Board, and the permit number. This is considered to be a problem and will require corrective action by the <br /> Operator; please see the first page of this report for additional information. The permit boundary was <br /> adequately delineated with white posts. The site was active at the time of the inspection; however, the <br /> Operator was not engaged in mining but was setting up the necessary components for the operation. The <br /> Division observed a fuel tank, with the appropriate secondary containment, located along the south permit <br /> boundary. In addition,the Operator was setting up the settling pond and water recirculation system. The <br /> Operator indicated there were no permanent man-made structures within 200 feet of the permit boundary of <br /> the Succession of Operator Application form; however, the Division observed an electric line along the <br /> western permit boundary. The Division considers the electric line to be a permanent man-made structure. As <br /> such, the Operator must obtain a structure agreement with the owner of the electric line. Pursuant to Rule <br /> 6.3.12, where a structure is a utility, the applicant may supply a notarized letter, on utility letterhead, from the <br /> owner(s) of the utility that mining and reclamation activities will have 'no negative effect' on their utility. <br /> Failure to obtain a structure agreement with the utility owner has been cited as a problem and will require <br /> corrective action by the Operator, please see the first page of this report for additional information. <br /> The Division currently holds a financial warranty in the amount of$5,000.00. As a part of the inspection the <br /> Division will recalculate the financial warranty estimate based on the approved Mining and Reclamation Plans. <br /> Any increase of the financial warranty will be sent under separate cover. <br /> This concluded the inspection. <br /> Page 2 of 4 <br />