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PERMIT #: M- 2008 -080 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: April 8, 2015 <br />OBSERVATIONS <br />The Journey Venture Pit was inspected by Peter Hays with the Division of Reclamation, Mining and Safety <br />(Division /DRMS) in response to the Operators submittal of an acreage reduction request (AR -01) and a <br />technical revision request (TR -01). Mr. Chris Leone with Journey Ventures, LLC and Mr. J.C. York with AT <br />Consulting, Inc. were present during the inspection. <br />The Operator submitted an acreage reduction request (AR -01) on March 24,•2015. The Division is required by <br />Rule 4.17.2 to inspect the site within 60 days after receiving the notice to determine if the Permittee has <br />complied with all applicable requirements. The reduction request was for a 1.68 acre parcel which was sold to <br />Archaeological Conservancy in "2010. The parcel is located along the southern boundary of the site. The 1.68 <br />acre parcel was fenced off on all sides, was vegetated with native vegetation and was never disturbed by the <br />mining activity at the site. The acreage reduction was approved by the Division on April 10, 2015. The release <br />reduced the permitted acreage from 84.63 to 82.95 acres. The Operator stated in the acreage reduction <br />request the permitted acreage was 84.68 acres, which -is not consistent with the Division file. <br />The Operator submitted a technical revision request (TR -01) on March 24, 2015. The Division is required by <br />Rule 1.9 to act on a technical revision application within 30 days after being filed with the Division. THe <br />revision updates the mine phasing plan and bond calculations for Phases 1, 2 and 11A. The revision allows for <br />Phase 2 to be mined below groundwater elevation to a depth to achieve 125,000 cubic yards of material. The <br />Operator estimates the phase will be mined 27 feet deep and the reclamation bond will be increased to <br />backfill Phase 2 to an elevation 2 feet above the groundwater elevation (4592'). The required backfill material <br />will be produced during the mining of Phase 2 (40,000 cubic yards), surface mining of the top 5 feet of <br />material from Phase 1 (45,000 cubic yards) and surface mining of the top 8 feet from Phase 11A (20,000 cubic <br />yards). The material from Phase 1 will be produced by mining the Phase from the east side of the existing <br />road at a 3H:1V slope. The material from Phase 11a will be produced by mining the Phase from the permit <br />boundary at a 3H:1V slope. The maps submitted with the technical revision request do not accurately <br />represent the proposed grading in Phase 1. • The Division request the Operator submit updated maps to <br />represent the proposed Phase 1 grading, specifically the grading surrounding the two oil and gas wells in the <br />Phase. The revised bond amount includes the revegetation costs for Phases 1, 2 and 11A. Groundwater will <br />not be exposed during the mining operations in Phases 1 and 11A. The technical revision was approved by the <br />Division on April 10, 2015. <br />The overall reclamation plan for the site remains to install a slurry wall around the permit boundary. The <br />technical revision is an intermediate method for the Operator to mine more material and comply with the <br />Division requirement to account for exposed groundwater at the'site. Phase 2 will be dewatered during <br />mining with dewatering trenches. The water will be discharged under a CDPHE permit at the eastern edge of <br />the Phase into the seep ditch. A well permit and SWSP are required prior to exposure of groundwater at the <br />site. <br />The Division currently holds a financial warranty in the amount of $40,381.00. The approval of TR -01 <br />increased the required financial warranty to $331,576.00, an increase of $291,195.00. The technical revision <br />will not be final until he bond is received and approved by the Division. - <br />Page 2 of 5 <br />