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PERMIT #: M- 2008 -017 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: July 11, 2014 <br />color and was discharged from the oil and gas trucks as a liquid. The complainant alleged Broken Arrow did <br />not allow the material to cure, which allowed the material to penetrate the pit soil and discharge to the Cache <br />Le Poudre River by way of an unidentified creek. The complainant stated the creek leading to the Poudre <br />River turned purple as a result of the activity. <br />The complainant also alleged used motor oil was being dumped up by a shed to the top of the mine and Mr. <br />Derr was placing red diesel (off -road use only diesel) in this personal vehicles. <br />entonite and cement from oil and eas companies <br />Mr. Derr stated his company has a contract with Noble Energy (Noble) to allow Noble to dump drill cuttings <br />and cured concrete of the outside of drill hole casings at the site. Stockpiles of recently placed drill cuttings <br />were observed in the northeast section of the site. The Division estimated a 2 acre portion of the site has <br />been backfilled with three (3) feet of drill cutting. As required by Rule 3.1.5(9), if an Operator intends to <br />backfill inert structural fill generated outside of the approved permit area, it is the Operator's responsibility to <br />provide the Division notice of any proposed backfill activity not identified in the approved Reclamation Plan. A <br />map indicating the approximate location and size of the cutting backfill area is attached. The observed <br />cuttings consisted of claystone bedrock and sandy clay material. No evidence of bentonite, cement or purplish <br />dye was observed during the inspection. <br />Mr. Derr stated all imported material was stored on -site temporarily and would be removed from the mine <br />site or used to stabilize a slope in the southeast corner of the property off of the permit boundary. As cited as <br />a problem on the first page, the storage and backfilling of portions of the site with imported material is not <br />permitted under the approved Mining Plan. The Operator must submit a technical revision, per Rule 1.9, to <br />revise the approved Mine Plan for the site to address the importing and backfilling activity. <br />The Division observed several ditches south of the Derr Pit and north of the Poudre River following the site <br />inspection. No evidence of purple staining was observed. <br />Illegal Use of Red Diesel <br />The Division does not have the authority to enforce the possible illegal use of red diesel by Mr. Derr in his <br />personal vehicle. Therefore, the Division did not inspect Mr. Derr's personal vehicle to determine if red diesel <br />was in the tank. <br />Disposal of used motor oil <br />No evidence of improper disposal of used motor oil was observed during the inspection. Mr. Derr stated all <br />mining equipment is serviced by mobile lube truck companies. Used motor oil is extracted from the mine <br />equipment, stored in the lube truck and disposed of by the lube truck company off -site. The Division did <br />observe storage of gear oil and other lubricants by Mr. Derr is the adjacent Loloff Mine site office. All <br />observed oils and lubricants were sealed and stored in labeled boxes and containers. <br />General Observations <br />The site activity consisted of a concrete recycling during the inspection. Mr. Derr stated the extraction of <br />gravel at the site has been suspended and all mining activity by his company has moved across the street to <br />the Loloff Mine site. <br />Page 2 of 3 <br />