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PERMIT #: M- 2004 -067 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: January 29, 2015 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). The Operator was contacted but did not attend. The MMRR Quarry is located in Gilpin County <br />approximately 5 miles southeast of Blackhawk alongside State Highway 119. The total permit area is 526.7 <br />acres with a maximum allowed disturbed area of 39.28 acres. The commodity of interest is aggregate and the <br />post- mining land use is wildlife habitat. <br />Mining at the MMRR Quarry has not commenced. The Division was informed through the 2014 Annual Report <br />that Brannan Sand and Gravel Company, LLC was still in the process of obtaining a Special Use Permit from <br />Gilpin County. If the Operator's Division approved Mining or Reclamation Plan is altered as a result of the <br />Special Use Permit review process, then a technical revision must be filed with the Division to address those <br />changes. <br />The Division currently holds a financial warranty in the amount of $10,000. The financial warranty was <br />reduced from $903,800 to $10,000 in March 2009. The Operator is reminded that prior to the commencement <br />of mining - related operations, the Operator is to notify the Division in writing that mining activity will <br />commence. In addition, the Operator will be required to reinstate the financial warranty to the originally <br />prescribed amount of $903,800 at the time the Division is notified. <br />The approval of the 112 Construction Materials Reclamation Permit for the MMRR Quarry contained a <br />stipulation which must be met prior to the commencement of mining. Stipulation No. 1 requires the Operator <br />to submit a technical revision, for Division review and approval, addressing a groundwater monitoring plan <br />that meets all requirements of Rule 3.1.7. At a minimum, the technical revision must include plans to <br />construct at least one monitoring well hydraulically up- gradient and one monitoring well hydraulically down - <br />gradient from the proposed quarry. The technical revision must include plans to collect and analyze samples <br />from the wells for a minimum of five calendar quarters to establish baseline groundwater quality conditions <br />and piezometric levels. <br />This concluded the inspection. <br />Page 2 of 3 <br />