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PERMIT#: M-1990-041 <br /> INSPECTOR'S INITIALS: MAC <br /> INSPECTION DATE: January 9,2014 <br /> OBSERVATIONS <br /> The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br /> (Division). Willie Phillips was present on behalf of Central City Consolidated Mining.The Bates-Hunter Mine is <br /> located between the towns of Central City and Blackhawk alongside State Highway 279.The mine site <br /> occupies approximately 1 acre and is situated at an elevation of 8,300 ft. The Golden Gilpin Mill is located <br /> about a half a mile up Highway 119 from its intersection with State Highway 279. The mill facility occupies the <br /> remaining 2.5 acres of the 3.5 acre permit boundary.The post-mining land use is industrial/commercial. <br /> The purpose of the inspection was to follow-up on several outstanding corrective actions which were issued <br /> following the previous inspection conducted on August 22, 2013. During the August 2013 inspection, the <br /> Division observed numerous 55 gallon barrels of reagents on the south side of the mill building. The Division <br /> cited a problem for failure to adequately store the reagents and required the Operator to move all of the 55 <br /> gallon barrels to the inside of the mill building. In addition, the Division observed gullies in the mill yard and <br /> sediment were being transported into the North Fork of Clear Creek. The Division cited a problem for failure to <br /> control erosion and required the Operator to repair the gullies and stabilize the mill yard so that sediment is <br /> no longer transported from the site. Finally, the Division increased the financial warranty from $5,000 to <br /> $15,500. The increase of the financial warranty was due to an excessive amount of old equipment and refuse <br /> scattered throughout the site.The increased financial warranty was to be submitted to the Division on or <br /> before November 18, 2013. <br /> The Division inspected the outside of the mill building and found the Operator has moved all of the 55 gallon <br /> barrels to the inside of the mill building. The barrels which were corroded have been removed from the site <br /> and properly disposed of. Also, the Division found the Operator had disposed of all of the materials which <br /> leaked from the barrels onto the surrounding bare ground. The Division considers this problem to be resolved. <br /> The Operator should take care in the future to ensure that all chemicals which are stored at the mill site are <br /> properly contained within the mill building and are appropriately labeled. <br /> The Operator was in the process of removing refuse and old equipment from the mill yard during the <br /> inspection. A substantial portion of the refuse which the Division observed during the August 2013 inspection <br /> has been removed from the property. As noted above, the financial warranty increase was primarily <br /> associated with the cost to haul and dispose of the old equipment and refuse. The Operator has informed the <br /> Division that clean up of the mill yard will continue. Therefore, the Division will re-evaluate the required <br /> financial warranty amount once all of the material has been removed. <br /> The ruts and gullies which the Division observed during the previous inspection are still present. The Operator <br /> has not taken any measures to ensure that sediment does not leave the site and enter the North Fork of Clear <br /> Creek. The Division will grant the Operator an additional 60 days to complete the required corrective action; <br /> failure to do so may result in enforcement actions. <br /> This concluded the inspection. <br /> Page 2 of 4 <br />