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PERMIT #: M-2009-010 <br />INSPECTOR’S INITIALS: ERR <br />INSPECTION DATE: October 15, 2015 <br /> <br />PROBLEMS/POSSIBLE VIOLATIONS <br /> <br />None <br /> <br />OBSERVATIONS <br /> <br />The Division of Reclamation, Mining and Safety (Division/DRMS) conducted an inspection of the Stewart Pit II (Permit <br />File No. M-2009-010), a Construction Material Limited Impact 110c Operation Reclamation Permit with 9.0 permitted <br />acres and an approved post mining land use of Pastureland. The mine is located approximately 8 miles southwest of <br />Stratton, Colorado and just north of Kit Carson County’s Pit No 18 (M-1985-195). Elliott Russell, with the Division, <br />inspected the site. Jim McCormick was contacted prior to the inspection, but was unable to accompany the Division. This <br />inspection was carried out as a part of the Transfer of Mineral Permit and Succession of Operator Application accepted by <br />the Division on August 27, 2015. As a result of a legal name change (which occurred in 2010) the permit, currently held <br />by Grasser Construction & Paving, LLC, is in the process of being transferred to the new name of McCormick Excavation <br />& Paving, LLC. <br /> <br />At 0800 hours, the Division arrived at the mine site, located ½ mile south of County Road N, on the west side of County <br />Road 26. At the time of the inspection the temperature was cold, the sky was clear, and the ground was dry. The mine site <br />identification sign was observed at the entrance to the site and was in compliance with Rule 3.1.12(1), but will need to be <br />updated with the new permittee name once the SO application is approved. The permit boundary had been delineated by <br />metal t-posts with tires. The site was not currently being mined at the time of the inspection, but evidence of recent mining <br />activity was observed. A front-end loader was also observed on-site. <br /> <br />Since the last inspection, conducted January 5, 2015, the pit (located in the northern portion of the site) appears to be the <br />same depth, but has advanced to the west. The northern side of the large overburden pile located southwest of the pit, has <br />been removed and likely used as product. There were also sand and gravel stockpiles located near the entrance of the site, <br />which appears to have been processed and staged to be hauled off-site. <br /> <br />The main purpose of this inspection was to observe site conditions and evaluate the financial warranty amount currently <br />held as a part of the Succession of Operator process. The Division has determined that the estimated liability amount <br />of $48,681.00 for Stewart Pit II is adequate. This amount will need to be posted by McCormick Excavation & Paving, <br />LLC within 60 days of the notice of requested financial warranty (sent under separate cover). Once accepted by the <br />Division, the application will be approved and the financial warranty and performance warranty of Grasser Construction <br />& Paving, LLC will be returned. <br /> <br />This concludes the Division’s Inspection Report; a subset of photographs taken during the time of the inspection are <br />included below. If you need additional information or have any questions, please contact me at Division of Reclamation, <br />Mining and Safety, 1313 Sherman Street, Room 215, Denver, CO 80203, by telephone at 303-866-3567 x8132, or by email at <br />elliott.russell@state.co.us. <br /> <br /> <br /> <br /> <br /> <br />Page 2 of 5