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PERMIT #: M-2017-021 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: January 17, 2018 <br />OBSERVATIONS <br />The Harmony Gardens 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. Mr. Kevin Anderson with Connell <br />Resources, Inc. and Mr. Bill Schenderlein with Blue Earth Solutions, LLC were present during the inspection. <br />The site was previously inspected by the Division on July 7, 2017 for the pre -operational inspection. This is the <br />first inspection of the site while the site is active. <br />The site is permitted for 9.9 acres divided into 2 mining phases with a total mining disturbance area of 7.7 <br />acres. Mining activities are complete at the site with the exception of the southern boundaries of Mine <br />Phases 1 and 2. The Operator is approved to mine within 20 feet of the permit boundary in both phases. The <br />Operator stated they would like to mine through the southern boundary of both phases to daylight the phases <br />into the adjoining Harmony Windsor Site. The Division will require the Operator to submit a technical revision <br />to revise the mining offset and update the Mining and Reclamation Plans and Maps pursuant to Rule 1.9 prior <br />to daylighting the southern boundaries of the phases. The maximum mining depth is approved for 10 feet <br />below grade. The Division estimated the maximum mined depth in both phases at 5 to 6 feet below grade. <br />The required mine sign was observed and the boundaries of the affected land were delineated as required by <br />Rule 3.1.12. The Division currently holds a financial warranty in the amount of $51,335.00, which appears <br />adequate to complete reclamation at the site. <br />The approved post mining land use is general agriculture. The north, east and west slopes of Phase 1 were <br />regraded to the approved final 3H:1V slopes and topsoil was placed on the pit floor and regraded slopes. The <br />north slope of Phase 2 has been regraded to the approved final 3H:1V slope. The remaining Phase 2 slopes <br />were vertical highwalls. The Operator stated material from the adjacent Harmony Windsor Site would be used <br />to backfill the highwalls to the approved 3H:1V slopes. The Division will require the Operator to submit an <br />inert fill notice pursuant to Rule 3.1.5(9) prior to importing material to reclaim the Phase 2 highwalls. <br />As cited as problems requiring corrective action on Page 1, the Operator committed to providing the Division <br />with copies of the approved APEN and CDPHE Discharge Permit Systems Permit (CDPS) for the site. The <br />Division has not received copies the permits as of the date of the inspection. The Operator stated during the <br />inspection an APEN permit was not required for the site since all material was transported off site to the <br />Connell processing facility located near 1-25 west of the mine site. The Division will require the Operator to <br />justify the lack of APEN permit and request the commitment be removed from the permit file. The Operator <br />stated a CDPS permit was obtained for the site and a copy would be provided to the Division. <br />Photographs taken during the inspection are attached. <br />Inspection Contact Address <br />Kevin Anderson <br />Connell Resources, Inc. <br />7785 Highland Meadows Parkway <br />Fort Collins, CO 80528 <br />Ec: Wally Erickson, DRMS <br />Page 2 of 6 <br />