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PERMIT #: M-2000-082 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: March 11, 2016 <br />south slopes have been graded and the upper banks of the future lake have been topsoiled above the <br />anticipated water elevation. The access ramp on the east slope of the Phase was being removed by mining <br />excavation. The Operator estimated the ramp will be removed in the next 2 months and reclamation will be <br />complete in the Phase by the end of June 2016. The depth of the pit was surveyed according to the Operator. <br />The pit floor is fifty (50) below the top of slope. The Operator stated the water seep elevation in the pit slopes <br />is approximately forty five (45) feet below the top of slope. The phase will be allowed to fill with groundwater <br />following completion of reclamation. The groundwater infiltration should restore the drawdown effects on <br />the Tyrrell well. <br />Monitoring Wells <br />The groundwater monitoring and mitigation plan for the site was revised under technical revision no. 1 (TR - <br />01). The technical revision was approved by the Division on November 24, 2010. The approved monitoring <br />plan states: two (2) monitoring wells, MW -1 and MW -2, will be monitored for Phase 1, three (3) wells, Derr <br />MW -1, Derr MW -2 and Derr MW -3, along the southern boundary of the Derr Pit will be monitored for Phase 2 <br />and two (2) additional wells will be installed between the Phase 3 mining area and the northern and southern <br />Duggan wells. The Duggan monitoring wells are to be installed twelve (12) months prior to dewatering activity <br />in Phase 3. All monitoring wells are required to be monitored on a monthly basis. <br />The last groundwater well monitoring data received by the Division was submitted by the previous Operator in <br />the 2013 annual report. The Succession of Operator application was issued by the Division on March 20, 2013, <br />transferring all mining and reclamation responsibility to Superior Oilfield Services Co., LTD. The Operator <br />stated during the inspection they were unaware of the groundwater monitoring requirement at the site and <br />have not collected the required monitoring well data. <br />The two approved Phase 1 monitoring wells were searched for during the inspection. Monitoring well No. 1 <br />(MW -1) was located in the northwest corner of the original permit boundary. The western portion of the site <br />was purchased by Leprino Foods Company in 2013. The area was released from the site in 2013, under AR -01. <br />The Leprino Foods Company, constructed a lined pond in the northwest corner of the original permit <br />boundary (Phase 4). It appears MW -1 was destroyed during the construction of the pond. Monitoring well <br />No. 2 (MW -2) was located during the inspection. The upper well casing was damaged, causing the PVC pipe to <br />pinch closed at ground level. A groundwater elevation could not be determined during the inspection. The <br />well appeared to be repairable, if the upper well casing is excavated and a new riser pipe and protective well <br />casing were installed. <br />As cited as a problem, the Operator must reinitiate the approved groundwater monitoring plan, provide <br />groundwater measurements for all current wells and install a replacement monitoring well for the damaged <br />MW -1 well and repair MW -2 well by the corrective action date. <br />Hill Petroleum well <br />Hill Petroleum installed a replacement monitoring well, Permit # 299316, on the E 8th site on June 19, 2015. <br />The well is located between the Phase 1 monitoring wells, MW -1 and MW -2. The SEO records indicate the <br />well was drilled to thirty (30) feet below grade. Groundwater was not encountered during the well <br />installation. The original Hill monitoring well was observed and measured during the inspection. The well <br />measured eighteen (18) feet below grade and no water was encountered in the well. <br />Page 3 of 10 <br />