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PERMIT ##: M-2017-002 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: March 2, 2017 <br />OBSERVATIONS <br />The Ard Property Borrow site was inspected by Peter Hays with the Division of Reclamation, Mining and Safety <br />(Division/DRMS) as part of the Division's monitoring inspection program. The Ard Property Borrow 111 permit <br />application was filed on February 14, 2017. The 111 Special Operation application was approved and issued <br />by the Division on February 28, 2017. The site is approved for 8.0 acres of disturbance related to the WCR 49 <br />expansion project. The site consisted of undisturbed rangeland as indicate in the permit application. The <br />Division holds a reclamation bond in the amount of $25,820.00. <br />The site was inactive during the inspection. The Operator had started construction of the site access road <br />from WCR 50 by installing a culvert in the road ditch and removing a section of fence. No other mining related <br />activities were noted during the inspection. The mine identification sign and the required boundary markers <br />were not observed pursuant to Rule 3.1.12. The lack for mine sign and boundary markers are not considered <br />to be a problem, since the site is not operational. The Operator is required to post the mine sign and install <br />boundary markers prior to initiating mining operations. The mine sign shall be clearly visible from the access <br />road with the following information: the name of the Operator, a statement that a reclamation permit for the <br />operation has been issued by the Colorado Mined Land Reclamation Board; and the permit number. <br />As cited as a problem on Page 1, an oil and gas wellhead owned by Noble Energy was observed along the west <br />boundary of the site during the inspection. The structure was not identified by the Operator during the permit <br />application process. The Division will require the Operator to update Exhibit L— Permanent Man -Made <br />Structures and the approved mine and reclamation plans and maps to identify and incorporate the wellhead <br />into the permit. Since the wellhead is within 200 feet of the permit boundary, the Operator must provide a <br />notarized agreement, pursuant to Rule 6.3.12, between the Operator and Noble Energy that the Operator will <br />provide compensation for any damage to the structure. The Operator must comply with the requirements of <br />Rule 6.3.12 prior to disturbing land within 200 feet of the wellhead. The mine and reclamation plans and <br />maps must be updated to indicate a 200 foot offset from the wellhead or the Noble Energy agreed offset from <br />the wellhead to the mining disturbance. <br />A copy of the inspection map created by the Division indicating the location of the Noble Energy wellhead is <br />attached for reference. The permit boundary corners were estimated since the Operator had not installed the <br />permit boundary marker yet. Photographs taken during the inspection are attached. <br />Page 2 of 7 <br />