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PERMIT #: M-2000-158 <br />INSPECTOR'S INITIALS: TOD <br />INSPECTION DATE: May 21, 2015 <br />The S&H Mine is permitted for 1508.63 acres. The site is located 2.5 miles northwest of Platteville, CO. The <br />post mine land use was changed in 2004 from recreation and wildlife to developed water resource by <br />Amendment No. 1 (AM -01). 269.23 acres were added to the permit and the mining and reclamation plans <br />were updated with Amendment No. 2 (AM -02) in 2010. The site was inactive and has not been mined since <br />the current Permittee, Gilcrest, assumed responsibility for the site in 2011. A processing plant was observed <br />during the inspection. The plant did not appear to be operational. <br />The Division currently holds a reclamation bond in the amount of $668,900.00. The financial warranty is a <br />place holder bond and not adequate to complete the approved reclamation plan at the site. The AM -02 <br />approval contained a stipulation preventing the Operator from performing work related to the installation of <br />the slurry walls or the perpetration and construction of the embankments until the Operator has submitted <br />and received approval for a Technical Revision to update the financial warranty for the proposed slurry walls <br />and embankment construction costs. The required TR has not been submitted by the Operator to date. <br />The City of Aurora (Aurora) and United Water & Sanitation District (United) are in the process of purchasing <br />the S&H Mine property from Gilcrest. The City of Aurora would purchase the southern half of the site and <br />United would purchase and mine the northern portion of the site. United would begin mining operations in <br />Sharkey Lake, which is sealed with a slurry wall. Aurora does not intend to mine the southern portion of the <br />site for 20 years. A Succession of Operator application is required by the Division to change the Permittee for <br />the site from Gilcrest to United. The financial warranty would be recalculated by the Division as part of the <br />future Succession of Operator process. <br />United has a pending 3 year lease agreement with Aurora to mine and the reclaim the northern portion of the <br />Aurora owned portion of the site where the existing processing plant and open water pond are located. <br />United would be required to backfill and reclaim the existing open water dredge pond and relocate and <br />reclaim the current processing area to the northern portion of the site within 3 years. <br />The approved final reclamation plan is for developed water resource. Aurora does not plan to mine or <br />construct the lined ponds in the southern portion of the site for 20 plus years. Aurora would like to have the <br />southern portion of the site released from the permit boundary. The release of the currently approved <br />acreage would require Aurora to repermit the site prior to starting mining activities on the southern portion of <br />the site in the future. At the request of Aurora, the southern portion of the site was evaluated during the <br />inspection to determine the status of the site. The Division is able to release undisturbed portions of the site, <br />which differ from the approved final reclamation plan if unaffected by mining. The southern portion of the <br />site is dominated by noxious weeds, as cited as a problem on page 1. The current Permittee, Gilcrest <br />Reservoir, has not implemented the approved weed control plan at the site. The following noxious weeds <br />were observed during the inspection; Hoary Crest (white top), Bull Thistle, Canada Thistle and cheat grass <br />(downy brome). The Division is not allowed to release mine sites which contain noxious weeds. Aurora would <br />need to document weed control efforts have been implemented by Gilcrest or control the noxious weeds at <br />the site for a substantial period of time prior to the Division's consideration of a full release request of the <br />southern portion of the site. A technical revision would be required to update the mining and reclamation <br />plans to indicated the undisturbed lands, change the post mining land use for the open water pond and <br />processing area from developed water resource to rangeland prior to the Division's consideration of the full <br />release request for the Aurora owned portion of the site. <br />Page 2 of 3 <br />