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PERMIT#:M-2014-041 <br /> INSPECTOR'S INITIALS: TC1 <br /> INSPECTION DATE: October 22,2014 <br /> OBSERVATIONS <br /> This was a pre-operation inspection performed by TC Wait and Mr. Tim Cazier with the Division of <br /> Reclamation, Mining and Safety (Division) as part of its review of a new 110(1) limited impact mine <br /> reclamation permit application. Mr. Russell Painter (representing the Operator) and Ms. Amy Titterington <br /> (USFS) were also present for the inspection. The Macanite VII & VIII site is located approximately 5 miles <br /> northeast of Lake George, CO, in Teller County. The site was accessed from FS Road 201. <br /> Inspection: <br /> The required posted notice was displayed (see Photo 1). Previous site activities involved prospecting, but have <br /> been limited to less than 1,600 square feet (thereby not requiring an NOI from the Division). The Operator <br /> plans on expanding the operation and bringing in mechanized equipment, thus the need for the mine <br /> reclamation permit: <br /> The current trench is about 60 feet long and 10 to 20 feet wide, including spoil (see Photos 2 and 3), with a few <br /> small hand dug pits about 75 feet to the southwest of the trench (see Photo 4). Mr. Painter believes the <br /> excavations will be no more than 9 to 12 feet deep, but will contact the Division should they go deeper than 15 <br /> feet. Mr. Painter plans to save topsoil and stockpile it for final reclamation. <br /> The permit area is for 5 acres. The Division understands that the intent is to disturb no more than 1.25 acres and <br /> that the existing trench is the primary location for future mining activity. <br /> File Review Notes: <br /> • The Division has not yet received a copy of the USFS approved Plan of Operations (POO), required to <br /> demonstrate the basis for legal right of entry to the site and to conduct mining and reclamation. Ms. <br /> Titterington indicated the USFS would be able to sign off on Mr. Painter's Poo in early November <br /> 2014. The Division recommended Mr. Painter request an extension to the decision date to mid- <br /> November to be sure adequate time is available to send the Poo to the Division. <br /> • The end of the public comment period was 10/10/2014. No public comments were received by the <br /> Division. <br /> • The Division received agency comments from Division of Water Resources (DWR), the State Historical <br /> Preservation Office (SHPO) and Colorado Parks and Wildlife (CPW). Comments from DWR and <br /> SHPO were provided to the Operator with the Preliminary Adequacy Review. CPW's comments are <br /> attached to this report. <br /> Bond Calculation: <br /> Detailed bond calculation worksheets were mailed to the Operator on September 11, 2014 with the Preliminary <br /> adequacy review. The Division estimated a bond of$3,300. Ms Titterington informed the Division that the <br /> USFS holds a$3,366 bond for the site. As such the Division believes the operation is adequately bonded. <br /> Recommendations: <br /> 1. The Division recommends the mine reclamation application be approved, once an approved USFS Plan <br /> of Operations is received by the Division. Notification will be sent under separate cover. <br /> 2. The Bond held by the USFS appears adequate. <br /> 3. Mr. Painter should request an extension to the Division's decision date to no earlier than November 15, <br /> 2014 to provide adequate time for the approved Poo to be submitted to the Division. <br /> Page 2 of 5 <br />