2018-05-21_INSPECTION - M2008017

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PERMIT #: M-2008-017 INSPECTOR'S INITIALS: ECS INSPECTION DATE: May 16, 2018 OBSERVATIONS This as a "pre -operational" inspection conducted by Eric Scott of DRMS as part of the review/approval process for the Derr Pit amendment AM01. The amendment is part of a corrective action required by a MLRB order signed on January 19, 2018 to address a violation for mining without a permit (disturbing greater than 2 acres outside of permitted area). AM01 was submitted to DRMS on February 21, 2018 and, if approved, will increase the permit area of the Derr Pit from 39.1 acres to 145 acres (see attached map for proposed new permit boundary). During the public comment period for AM01, DRMS received two objections to the amendment application. One objection was concerning fugitive dust emissions from the site (a non -jurisdictional issue for DRMS) and was withdrawn by the objector on May 15, 2018. The second objection was submitted due to concern for a nearby irrigation well located on the southwest corner of Balsam Ave and East C St (County Rd 62) as shown on the attached map and in Photo 4. This well was reportedly impacted and had to be taken out of operation due to dewatering of the Loloff Pit located approx. 650 feet directly south of the well. The well owner reported during this inspection that the well has returned to operating water levels since the Loloff Pit slurry wall was installed in 2017, but has not yet been put back into service. The well owner/objector expressed concern that the proposed mining in the Derr Pit amendment area immediately east of the well location would also adversely impact the well. In order to address this concern, on May 15, 2018, the applicant committed to installing the slurry wall around the proposed Phases 5-7, located immediately east of the well, prior to exposing groundwater in those areas. Installation of the slurry wall prior to exposing groundwater in these phases should prevent dewatering within the cells from impacting the water levels in the surrounding area, and therefore protect the irrigation well from adverse impacts. To -date the objection related to the possible impacts to this well has not yet been withdrawn. The initial DRMS decision date for AM01 was set at May 29, however, on May 15 the applicant requested the decision date be extended beyond the 90 day deadline to June 29. This extension will allow the applicant to fully resolve all remaining adequacy issues. The existing and proposed permit boundaries were marked with painted stakes (Photos 2, and 3), the notice of amendment applied for sign was present at the site entrance (Photo 1), and the features within the permit area appeared to be accurately shown by the submitted Exhibit C map. All structures within 200' of the proposed Permit boundary (such as the obiector well, structures on the west side of Balsam Ave structures on the north side of County Road 62 and on the SW corner of County Rd 62 and County .Rd 43, etc.I will need to be depicted on the map for Exhibit C as required by Rule 6.4.3 (b) and correlated to Exhibit S damage waiver mailings in the amendment application No other issues were noted during this inspection. Inspection Contact Address Kelly Hodge Broken Arrow Investments LLC 699 N. First Avenue Greeley, CO 8063I Page 2 of 3