2017-03-16_INSPECTION - M2004047

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PERMIT #: M-2004-047 INSPECTOR'S INITIALS: ECS INSPECTION DATE: March 16, 2017 OBSERVATIONS The Farfrumwurkin File Pit 112 was inspected by Eric Scott with the Division of Reclamation, Mining and Safety (Division/DBMS) in response to a surety reduction request received by DRMS on January 18, 2017. The site was previously inspected by the Division on August 29, 2013. Mr. Jon File with Farfrumwurkin, LLLP was present during the inspection. The site is permitted for 314.14 acres. The approved post -mining land use is currently developed water resource. The site was inactive during this inspection. The site is divided into east and west pits by Weld County Road 3 X. The northwest portion of the east pit is currently being mined with the remainder of the east area still being used for agricultural purposes or gas and oil development. Mr. File stated the currently undisturbed portion of the east pit may not be mined due to limited resources in the east permit area. The mining in the west portion of the permit has been completed, and the south reservoir has been clay lined, approved by the SEO and filled. The north pond of the west pit is unlined and has been filled. The surety reduction requested by the operator will be denied by DRMS at this time. Although DRMS acknowledges that the south pit has been successfully lined, there is still quite a significant amount of earthmoving, grading, and seeding to be done on the west side of the permit. During this inspection DRMS observed several very large and many smaller stockpiles of product, by-product, and topsoil remaining on the west portion of the permit (see attached photos). These stockpiles will need to be removed, the topsoil stockpile replaced, and the site seeded according to the approved reclamation plan before DRMS can consider a significant reduction to the existing reclamation bond. DRMS also observed several slash piles, mining equipment, and temporary structures (trailers) that will need to be removed from the west side of the permit area prior to bond reduction. The Division holds a financial warranty in the amount of $476,500.00, which appeared adequate to complete the remaining reclamation based on this inspection. The long-term groundwater augmentation requirements for the site are satisfied by the bond, which includes the cost to construct the clay liner for the eastern pit. The operator has dedicated water rights to the SEO through the submitted SWSP to cover groundwater exposure at the northern unlined pond on the west side of the site until a permanent augmentation plan is approved. The mine sign was served as required by Rule 3.1.12, however no permit boundary markers were observed on the eastern portion of the permit area. As stated on the first page of this report, the operator will be required to replace the permit boundary markers as needed to define the full extent of the permit area, and provide proof to the Division that this has been completed by April 28, 2017. The Operator stated the City of Erie is planning to annex the property into the city limits. The property would then be re -zoned and developed as residential. The rezoning to residential use may occur prior to the site being released by the Division as developed water resource as the post -mining land use. The Division would require the Operator to submit an amendment to the permit to change the post -mining land use from developed water resource to residential following the rezoning by the City of Erie if the current reclamation plan is altered by the rezoning. Photographs taken during this inspection are attached. Page 2 of4