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PERMIT#: M-2008-006 <br /> INSPECTOR'S INITIALS: MAC <br /> INSPECTION DATE: June 17,2016 <br /> fee of$216.00 by the corrective action date. <br /> CORRECTIVE ACTION DUE DATE: 7/29/16 <br /> OBSERVATIONS <br /> The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br /> (Division).Kevin Anderson of Connell Resources was also present for the inspection. The SerFer Pit is located <br /> approximately 2 miles west of the Town of Windsor on the SW corner of Highway 392 and County Road 13. <br /> The total permitted area encompasses 45 acres of which 30 acres are designated as affected area. <br /> On June 9, 2016, the Division received a request for a surety reduction. In accordance with Construction <br /> Materials Rule 4.17.2, the Division sent notice of the request for a surety reduction to the landowner, the Fort <br /> Collins Soil Conservation District, the Larimer County Commissioners and the Office of the State Engineer <br /> (SEO). The Division received comments from the SEO, which stated they did not object to the reduction of the <br /> financial warranty. <br /> Financial Warranty: <br /> The Division currently holds a financial warranty in the amount of$328,445.00. The Operator has provided a <br /> bond calculation for the remaining reclamation tasks as required by Construction Materials Rule 4.14.1(2)(b). <br /> The Operator has estimated the remaining reclamation work will cost $9,880.00. The reclamation tasks which <br /> remain include establishing vegetation and weed control. The Division will perform a bond calculation for the <br /> remaining tasks. Notice of the Division's bond calculation and decision regarding the surety reduction request <br /> will be sent under separate cover. <br /> Hydrologic Balance: <br /> The approved post-mining land use for the SerFer Pit is developed water resource. The construction of the <br /> compacted clay liner was completed in 2015. The clay liner leak test commenced on February 6, 2015 and <br /> concluded on May 8, 2015. The SEO determined the reservoir was lined to the approved design standard and <br /> is now classified as a lined reservoir in accordance with the 1999 SEO Guidelines. The management of the <br /> property has been transferred to United Water and Sanitation District. The reservoir is fully functional and was <br /> full of water at the time of the inspection. <br /> Reclamation Success: <br /> As noted above, the reservoir was full with water at the time of the inspection. The Division inspected the <br /> shoreline of the reservoir, which was stable and did not show any signs of erosion. The reservoir slopes were <br /> reclaimed to 3H:1V and a graveled access road was constructed around the perimeter of the reservoir. The <br /> Division observed an area immediately south of the reservoir which had been reclaimed into a shallow bowl. <br /> The depression was approximately 3-4 feet below the surrounding grade. The approved Reclamation Plan Map <br /> shows that this area was to be level and at the same elevation as the top of the reservoir. The Operator was <br /> not certain as to why reclamation of this area deviated from the approved Reclamation Plan. This change to <br /> the Reclamation Plan has been cited as a problem and will require corrective action by the Operator. Please <br /> see the first page of this report for additional information. <br /> Revegetation: <br /> According to the Operator, the site was seeded in July 2015. The Division observed some germination of the <br /> planted grass species. However, most the area which was planted was bare. The typical planting seasons occur <br /> Page 2 of 5 <br />