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PERMIT #: M- 2001 -085 <br />INSPECTOR'S INITIALS: TOD <br />INSPECTION DATE: August 15, 2014 <br />OBSERVATIONS <br />This inspection was conducted by Tyler O'Donnell of the Division of Reclamation, Mining and Safety <br />(DRMS). 120 85 LLC, the Operator, was represented by David Schultjann. <br />The 120th Estate Partners pit is located in Adams County approximately 0.5 mile southeast of Henderson <br />Colorado, just north of 120th Ave., and just west of the Fulton Ditch. The 120th Estate Partners pit is a 49.10 - <br />acre 112 Construction Materials Reclamation Permit. The approved post- mining land use is general agriculture. <br />At the time of the inspection it was overcast. The majority of the mine was dry, with the exception of the <br />exposed groundwater pond. The site is currently being used as a recycling plant for construction materials <br />(concrete and asphalt). The materials that are not usable after the recycling process are used to backfill the <br />exposed groundwater pond. During the inspection the site was active, trucks were bringing in material to either <br />be recycled or dumped into the pond. <br />The Operator submitted Permit Amendment Number 6 (AM -06) to change the post- mining land use from <br />developed water resource to general agriculture. In AM -06 the Operator stated that all mining has been <br />completed at the site. The Operator is permitted to recycle asphalt and concrete. <br />DRMS was concerned that the Operator is trucking material off site that was committed to being used in final <br />reclamation (letter from Operator titled "statement regarding availability of materials" received August 30, <br />2013). The Financial warranty was calculated assuming that this material would be available for final <br />reclamation. Exportation of this material could result in a deficit of financial warranty. <br />During the inspection the Inspector observed a recent excavation into the stockpile in the southeastern corner of <br />the permitted mine site. It appears that the Operator had excavated material out of a stockpile in the southeast <br />corner of the permitted site (see photo 1). The Operator's representative explained that the Operator had <br />extracted material from the stockpile. The extracted material was hauled off site and used in a construction <br />project. The Operator's representative estimated the volume of material hauled off site was approximately <br />3,000 cubic yards. <br />CONCLUSION <br />The excavation and exportation of material generated from within the permit boundary is deemed mining. The <br />Operator stated in AM -06 that mining has been completed at the site and only reclamation activities would <br />occur. The Operator also committed to leaving this material on site for use in final reclamation. This will be <br />cited as a problem for general compliance with the mine plan and require a corrective action. <br />One Technical Revision may be submitted for addressing both problems cited in this inspection report. <br />Inspection Contact Address <br />Eric Fenster <br />120 85 LLC <br />10925 East 120th Avenue <br />Henderson, CO 80640 <br />CC: Tom Kaldenbach, DRMS <br />Tony Waldron, DRMS <br />Page 3 of 5 <br />