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PERMIT#:M-1984-094 <br /> INSPECTOR'S INITIALS:MAC <br /> INSPECTION DATE: September 8,2014 <br /> reestablish Ditch No. 2 so that it would function properly as a stormwater diversion channel. The Division <br /> found that Ditch No. 2 had been cleared of fill material. It appears that the Operator widened both Ditch No. 1 <br /> and 2 since the last inspection. The ditches were poorly graded and positive drainage within the ditches has <br /> not been achieved. During the inspection,the Division observed water being conveyed into the pit through <br /> Ditch No. 1. As previously noted Ditch No.1 and 2 are stormwater diversion ditches and have not been <br /> approved to be used as conveyance ditches. The Mining Plan states that water from Sacramento Creek will be <br /> conveyed to the mine using a 6" diameter pvc pipe. <br /> The Division observed topsoil which had not been properly salvaged while inspecting the highwalls and the <br /> diversion ditches. Topsoil could be seen piled along the edge of the diversion ditches. In addition,the Division <br /> observed topsoil along with vegetation beneath stockpiles. The Mining Plan states that the Operator would <br /> salvage between 6-8 inches of topsoil as mining progressed into undisturbed areas. The Mining Plan further <br /> states that there would be a deficit of approximately 7,753 cubic yards of topsoil, which was to be imported <br /> over the life of the mine. The Operator will need to revise the amount of topsoil which needs to be imported <br /> due to improper topsoil handling. <br /> The Division currently holds a financial warranty in the amount of$82,300.00. The financial warranty <br /> calculation was based on a number of factors including the amount of topsoil which will be replaced during <br /> reclamation and final grading of highwalls. The Division will recalculate the required financial warranty amount <br /> based on the above noted observations. Notice of any increase to the required financial warranty amount will <br /> be sent under separate cover. <br /> Based on the findings of this inspection, the Division has reason to believe the Operator is in violation <br /> pursuant to C.R.S. 34-32.5-124 for failure to comply with the conditions of an order, permit or regulation and <br /> in violation of C.R.S. 34-32.5-116(4)(g) for failure to remove and segregate topsoil from other spoil. The <br /> possible violation will be scheduled for the October 29, 2014 Mined Land Reclamation Board Hearing. Notice <br /> of such hearing will be sent under separate cover. <br /> This concluded the inspection. <br /> Page 3 of 5 <br />