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PERMIT#: M-1982-121 <br /> INSPECTOR'S INITIALS: ACY <br /> INSPECTION DATE: April 12, 2016 <br /> OBSERVATIONS <br /> This inspection was conducted as part of the Colorado Division of Reclamation, Mining and Safety (Division) <br /> normal monitoring program. The Division was contacted by Bureau of Land Management (BLM) and informed <br /> that they would be conducting an inspection and requested the Divisions presences. Justin Olin, Auggie <br /> Franklin and Travis Litsche represented Calk Jessica Lopez Pearce represented the Colorado River Valley Field <br /> Office BLM and accompanied Amy Yeldell of the Division on the inspection. <br /> The Mid-Continent LST is a 112c permitted site that includes a total of 32.78 permitted acres. This site is <br /> located approximately 1.2 miles north of Glenwood Springs, Colorado and is accessed via the Transfer Trail <br /> Road. <br /> Currently the Division holds a Financial Warranty in the amount of$122,793.00 for this site. A Notice of Surety <br /> Increase was issued on November 19, 2015 requiring the additional surety amount of$49,583 for a total bond <br /> amount of$172,376 to be held. An objection was received, as well as an extension request. The one-time 30 <br /> day extension request was approved requiring the addition surety to be posted by April 7, 2016. To date the <br /> additional surety amount has not been accepted by the Division. On April 18, 2016 a Reason to Believe letter <br /> was sent. The RTB will be withdrawn if the matter is abated. <br /> A records review indicates the annual report and fee compliance requirements are active. As a reminder the <br /> annual report and fee are due April 25, 2016 and have not been received by the Division as of the date of this <br /> report. <br /> The mine identification sign and affected area boundary markers are in place and in compliance with Rule <br /> 3.1.12. The sign is located at the entrance of the permit boundary fastened to the scale house. The permit <br /> boundary is clearly delineated by t-post with white metal caps to stand out at a distance. In several instances <br /> mining/ road cuts have occurred up to the permit boundary. <br /> What appears to be the scale and scale frame have been dismantled. The scales sits due north of the scale <br /> house. While the scale frame sits south of the gate. It is noted that the permit boundary does extend slightly <br /> south of the gate. The scale frame likely sits on or just inside of the permit boundary. The operator is <br /> cautioned to make sure all material associated with mining stays within their permit boundary at all times to <br /> avoid future potential enforcement actions. <br /> BLM took time to review their file with the operator. And explained how their approvals do not always <br /> coincide with DRMS' approvals. These permit provisions should match up or at the very least not have <br /> conflicting requirements. One specific area of interest mentioned was the BLM approved acreage of 15.7 ac <br /> while DRMS has approved 32.8 acres. Several Plan of Operations submittals have been received by BLM from <br /> the operator. The BLM will be working with the operator to finalize these submittals so that they can being the <br /> permit modification process. The Division recommends that upon BLM approval the operator makes any <br /> necessary revision to ensure that the BLM and DRMS approvals coincide. <br /> The sediment retention pond on the southwest corner of the mill bench was recently disturbed. Mr. Olin <br /> explained that he attempted to remove sediment and improve drainage however the supersaturated soils <br /> made work impossible. Currently the sediment pond is ill constructed and will require additional reworking. <br /> While attempting to maintain the structure the dozer slid down the embankment leaving a large gouge that <br /> Page 2 of 11 <br />