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PERMIT #: M- 1983 -067 <br />INSPECTOR'S INITIALS: TOD <br />INSPECTION DATE: August 14, 2014 <br />OBSERVATIONS <br />This inspection was conducted by Tyler O'Donnell of the Division of Reclamation, Mining and Safety <br />(DRMS). The inspection was conducted in response to a complaint received via email on August 4, 2014 from <br />Steve Zigan who lives next to an approximate 24 -acre lake called Zigan Lake. The complaint explains that <br />water levels in Zigan Lake have been elevated as a result of alluvial groundwater mounding on the upgradient <br />sides of slurry walls at the nearby Stagecoach Pit (operated by Albert Frei & Sons, Inc.) and Pit 29 (operated by <br />Brannan Sand and Gravel, L.L.C.). DRMS is addressing Pit 29's contribution to groundwater mounding <br />separately from Stagecoach Pit. <br />The inspection consisted of site visits to Albert Frei and Sons' Stagecoach Pit and Worthing Pit, and a site visit <br />to Zigan Lake. Albert Frei & Sons Inc., was represented by Ben Frei during the inspection of the Stagecoach <br />Pit and Worthing Pit. Steve O'Brian with Environment, Inc., the consultant representing Albert Frei & Sons <br />Inc., was also present during the inspections of the two mine sites. Steve Zigan, Andy Zigan and Carlo Gaines <br />were present during the inspection of Zigan Lake. <br />The Stagecoach Pit is located in Adams County approximately 0.5 miles north of Henderson Colorado, just <br />north of 124th Ave., and just east of the South Platte River. The Stagecoach Pit is a 52 -acre 112 Construction <br />Materials Reclamation Permit. The approved post - mining land use is developed water resource. <br />DRMS had previously received citizen complaints about elevated lake levels in Zigan Lake in 2009. The <br />Operator proposed building a gravity drain from Zigan Lake around the Stagecoach Pit, which would drain into <br />an infiltration gallery on the downgradient side of the pit. The Operator believed the gravity drain would <br />relieve elevated lake levels in Zigan Lake. The gravity drain was incorporated into the approved permit through <br />Technical Revision Number 4 (TR -04), which was approved on March 25, 2010. TR -04 targeted lowering the <br />Zigan Lake elevation to approximately 5,014.67 feet. DRMS considers this target elevation to represent the <br />lake level prior to mining disturbance (that is, the "prevailing hydrologic balance "). <br />Figure 1, below, shows the locations of the gravel pits, the slurry walls, monitoring wells, the gravity drain, and <br />the location of Zigan Lake. <br />Page 2 of 7 <br />