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PERMIT#:M-2004-022 <br /> INSPECTOR'S INITIALS: PSH <br /> INSPECTION DATE: July 10,2014 <br /> OBSERVATIONS <br /> The Raindance Sand and Gravel Mine was inspected by Peter Hays with the Division of Reclamation, Mining <br /> and Safety (Division/DRMS) as required by the Transfer of Permit and Succession of Operators (SO-02) process <br /> and Rule 1.12. Mr. Cody Wooldridge with Water Valley was present during the inspection. The site was <br /> previously inspected by the Division on June 6, 2012 for SO-01. <br /> On April 30, 2014, Alpine Demolition, Inc. (Alpine) and Raindance Aquatic Investment, LLC (Raindance) <br /> submitted a Transfer of Permit and Succession of Operators Application Form (SO-02) and selected Option B. <br /> By selecting Option B, Raindance choose to not waive their right to a 30-day processing period and was <br /> required to submit a replacement Financial Warranty for the same dollar amount maintained by the current <br /> Operator ($28,000.00). On June 10, 2014, the application was deemed complete following the submittal of <br /> the current Succession of Operator form and the requested financial warranty documents. The Division <br /> approved the Transfer of Permit and Succession of Operators for the Raindance Sand and Gravel Mine on June <br /> 17, 2014. Raindance is now the permitted operator of the site and Alpine has been released from reclamation <br /> responsibility at the site. <br /> The Division is required to recalculate the required reclamation bond within 60-days from the date of the <br /> transfer is approved. The Division currently holds a reclamation bond in the amount of$28,000.00, which is <br /> adequate to reclaim the site based on this inspection. The pit has been reclaimed as a clay lined reservoir and <br /> the liner was approved by the Colorado Division of Water Resources on March 10, 2008. <br /> Mining activities at the site ended in 2009 according to the annual reports submitted by the Operator. The <br /> site is still being used to recycle concrete from the Kodak plant demolition. Alpine is no longer performing the <br /> recycling operation. A new company was hired by Raindance to complete the recycling of the remaining <br /> concrete and asphalt stockpiles. Raindance estimates another year will be required to complete the recycling <br /> project at the site. <br /> The Raindance Mine site conditions were similar to the observations made during the last inspection. The <br /> concrete stockpile in the northwest corner of the site has been reduced in size. The asphalt stockpile <br /> remained unchanged and will be processed after the concrete stockpile recycling is complete according to the <br /> Operator. <br /> The site revegetation has improved since the last inspection. Scotch thistle, field bind weed, cheat grass and <br /> kochia were observed during the inspection, however they appeared better controlled than observed during <br /> the last inspection. The Operator stated the north and west shorelines and the upper portion of the site will <br /> need to be topsoiled and reseeded following the completion of the recycling operation. The upper portion of <br /> the site contained concrete beams, a stockpile of sandstone and a topsoil stockpile. The east lake shoreline <br /> will be protected from further erosion by installing rock along the shoreline. The Operator was aware of the <br /> need to remove the Russian-olive tree in the western side of the site and the tamarisk plant along the north <br /> shoreline. <br /> The pump structure located in the northeast corner of the reservoir, the trailers and the material stockpiles <br /> noted in the previous inspection report remain at the site. A solar powered gauge station was being installed <br /> for the pump structure during the inspection. An entrance sign was posted and permit boundary markers <br /> were observed as required by Rule 3.1.12. <br /> Page 2 of 4 <br />