2016-03-22_INSPECTION - M1981112

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PERMIT #: M-1981-112 INSPECTOR'S INITIALS: ECS INSPECTION DATE: March 15, 2016 OBSERVATIONS This was a routine monitoring inspection of the Builder's Aggregate Pit 112c permit conducted by Eric Scott of DRMS at approximately 0915 on March 15, 2016. Permittee representative James Miner was present for the inspection. The Builder's Aggregate Pit site is an 80 acre 112c permit with a current reclamation bond of $11,750. The approved post -mining land use is industrial/commercial. The previous method of mining at this site was suction dredging along the south bank of the Platte River from within the flood plain. However, according to the last annual report submitted by the permittee, the last date of excavation or processing at this site was July 2013. Since 2013, severe flood events on the Platte River have filled in the previous dredge pond, and a portion of the Platte River now flows through the previously active portion of the site (Photo 6). The remaining accessible permit area has been used primarily as a resale point for imported material, and to recycle concrete and asphalt (Photos 3 and 4). The site will need to maintain mining -related activity (mining/sales/reclamation) at least every 180 days to avoid the requirement for the permit to be put into temporary cessation status. The current condition of the site is also summarized in the attached photos. There are several significant items that will need to be addressed before this site could resume operations as currently permitted. These requirements have been summarized on the first two pages of this report. The most important will be securing the necessary approvals for a dredge operation in the post -flood Platte River from the US Army Corps of Engineers (US ACOE), and/or exposure of groundwater from the Colorado State Engineer's Office Division of Water Resources (DWR). At this time the Builder's Aggregate operation has no approved well permit or substitute water supply plan. The April 1993 application for well permit for file# AD13082 was denied by the DWR (see attached letter from DWR file). No groundwater may be exposed at this site until the appropriate permitting with the DWR is completed and evidence of this is submitted to DRMS. The previous dredge pond has been completely backfilled by the recent flood events, eliminating the previous groundwater exposure at the site. If/when dredge operations and/or groundwater exposure are approved by the US ACOE and/or DWR, DRMS will need to be notified so that the required bonding for any authorized exposed groundwater can be addressed. Due to the location of this site, the only practical solution for exposed groundwater bonding will be to bond for complete backfill of any groundwater exposed by any future mining operations, or dedication of permittee owned rights to DWR to cover any exposure. The appropriate bond will need to be submitted to DRMS and approved prior to the commencement of any future dredge activity. Any designated wetlands present on the site will also need to be identified and clearly delineated so that they may be preserved. Any wetlands disturbed will need to be mitigated appropriately through an approved Corps of Engineers wetland mitigation plan (Photo 2). Due to the nature of the dredge operation, and its proximity to the Highway 52 bridge across the Platte River (adjacent to the site and immediately downstream), the permittee will also need to submit an appropriate engineering evaluation to demonstrate that the proposed dredge activities will not adversely impact the stability of the bridge during normal operations or flood events. This evaluation will need to be approved by DRMS prior to the initiation of any future dredging operations. Again — please note that dredge operations cannot resume at this site until these all issues have been fully resolved. Page 3 of 5