2015-10-20_INSPECTION - M2010034

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PERMIT #: M-2010-034 INSPECTOR'S INITIALS: PSH INSPECTION DATE: October 1, 2015 INSPECTION TOPIC: Off-site Damage PROBLEM/POSSIBLE VIOLATION: Problem: Land has been affected outside of the approved permit boundary by the construction of a scale house. This is a possible violation pursuant to: 1.) C.R.S. 34-32.5-109(1) for failure to first obtain from the board or office a reclamation permit prior to engaging in a new operation AND/OR C.R.S. 34-32.5-116(4)(1) for failure to protect areas outside of the affected land from slides or damages occurring during the mining operation. 2.) C.R.S. 34-32.5-116(4)(1) for failure to protect areas outside of the affected land from slides or damages occurring during the mining operation. CORRECTIVE ACTIONS: The Operator must provide an explanation for the new disturbance by the corrective action date. The Operator will be required to submit a conversion application to the permit to include scale house if the disturbance is mining related. CORRECTIVE ACTION DUE DATE: 11/19/15 OBSERVATIONS The McEndaffer Mine was inspected by Peter Hays with the Division of Reclamation, Mining and Safety (Division/DRMS) as required by the Transfer of Permit and Succession of Operators process and Rule 1.12. Mr. Rick Miller with Syzygy Enterprises, LLC (Syzygy) was contacted prior to the inspection, but was not present during the inspection. The site was previously inspected by the Division on September 13, 2012. On September 3, 2015, Syzygy submitted a complete Transfer of Permit and Succession of Operators Application Form (SO -01) and selected the option to maintain the right to a decision within 30 days. Syzygy provided a replacement financial warranty in the amount of $17,000.00. The Succession of Operators revision was approved by the Division on September 4, 2015. Syzygy Enterprises, LLC is the permitted operator of the McEndaffer Mine and assumed all responsibilities concerning this operation. The Division is required to recalculate the reclamation bond within 60 -days from the date the permit transfer is approved. The Division currently holds a reclamation bond in the amount of $17,000.00. The financial warranty does not appear to be adequate to reclaim the site based on this inspection. The Division will recalculate the financial warranty estimate after the Operator has responded to the problems noted in this report. The site is permitted for 9.99 acres with 8.75 acres of disturbance and 1.24 acres of mine setbacks. The pre and post mining land use for the site is rangeland. The approved mine plan states mining will progress from north to south and approximately 25 feet of material will be removed from the hilltop creating a level floor with 3H:1V side slopes. The perimeter slopes will be mined at 3HAV and no backfilling will occur at the site. A problem was cited for lack of boundary markers during the last inspection. The previous Operator, Willits Company, submitted photographic proof of the installed boundary markers on February 13, 2013. Due to the lack of markers during the last inspection, the Division was not able to determine if the mining disturbance was within the permit boundaries. The permit boundary markers were GPS surveyed by the Division during this inspection using a Trimble Juno 3B. Maps of the GPS survey results are attached. The survey indicated a marked permit boundary of 14.6 acres, which is 4.61 acres greater than the approved 9.99 acres. The total affected area surveyed was 11.38 Page 2 of 8