2014-10-16_INSPECTION - M1999006

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PERMIT#: M-1999-006 INSPECTOR'S INITIALS:PSH INSPECTION DATE: August 28,2014 OBSERVATIONS The Kurtz Resource Recovery Land Development Project site was inspected by Peter Hays with the Division of Reclamation, Mining and Safety (Division/DRMS) in response to a citizen complaint regarding the large sand stockpile located in the northeast corner of the site. The site was previously inspected by the Division on July 6, 2011. Mr. Chris Varra, Mr. Garrett Varra, Mr. Brad Jones and Mr. Brad Janes with Varra Companies, Inc. (Varra) were present during the inspection. The Division currently holds a financial warranty in the amount of$333,800.00, which is not adequate to reclaim the site based on the observations from this inspection. The approved mining plan indicates product stockpiles will be stored in Tract B, the location of the large sand stockpile; however the size of the pile is much larger than typical stockpiles for this type of operation. The sand stockpile was estimated to be 515,555 cubic yards in volume by the Division based on inspection observations and aerial photography of the site. The approved mining and reclamation plans do not indicate a stockpile of this size will be stored at this location. The current financial warranty amount does not account for the cost to reclaim the sand stockpile. Per Rule 4.2.1(2), the Division may review any financial warranty for adequacy at any time. The Division has estimated the cost to move the large sand stockpile into Tract A at$419,219.00. The addition of this reclamation task will increase the total required financial warranty to $753,019.00. A copy of the bond estimate to move the sand stockpile is attached for review. The Division requests a meeting with Varra Companies to discuss this issue prior to issuing the surety increase letter. The Kurtz site is divided into four (4) tracts: Tract A, B, C and D. The site was actively mining, processing and hauling aggregate during the inspection. The mine sign was posted at the mine site entrance as required by Rule 3.1.12 and the permit boundaries were clearly delineated. Tract A is located in the southeastern portion of the site and contains the current extraction activity at the site. The Operator estimates 10-15 years of material remain to be mined in the tract. Excavation activity in the tract was ongoing during the inspection. The construction of the clay liner in the tract is progressing with only the northeast corner and a portion of the east boundary remaining to be lined. The sedimentation ponds located along the western boundary of the tract will be backfilled with waste material as mining continues. The pond backfilling operation is not currently approved in the mining and reclamation plans. The Operator must submit a technical revision to update the approved mining and reclamation plans for the site to indicate this change prior to consideration of any future release request by the Division. Tract B is located in the northeastern portion of the site and contains the processing facilities and product stockpiles. The large sand stockpile, which prompted this inspection, is located in the northeast corner of the tract. The Operator stated the material is sold as concrete and asphalt sand and would produce sale receipts upon request from the Division. The Operator stated the stockpile is routinely watered to reduce dust emissions from the stockpile. The Operator stated the sand would be mixed with other material to reduce the size of the stockpile in the future. The mining activity in Tract C is complete and reclamation activities have begun at the site. The clay liner for the tract is approximately 75%complete with only the northeast corner remaining to be lined. The tract will require dewatering to complete the construction of the liner. The upland area of Tract C is dominated by annual weeds and will require reseeding as part of reclamation activities. Page 2 of 6