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PERMIT#: M-1981-287 <br /> INSPECTOR'S INITIALS: ECS <br /> INSPECTION DATE: June 14,2022 <br /> OBSERVATIONS <br /> This is a routine monitoring inspection conducted by Eric Scott of the Division of Reclamation Mining and <br /> Safety who met the permittee's son, Kurt Arnusch, at the site entrance for this inspection. The site is located <br /> East of WCR 71 and North of WCR 6 and is permitted for a total of 9.8 acres in two locations; an 8.1 acre north <br /> pit and a 1.7 acre south pit. Both permitted areas are located in or adjacent to the bed of Lost Creek. Lost <br /> Creek is an intermittent stream with a sand bed that was dry during this inspection. <br /> The site was previously inspected by DRMS in November of 2017. At the time of the previous 2017 inspection <br /> the site was stable and fully revegetated and the permit could have been released, had a full release been <br /> requested by the permittee. <br /> Sometime within the last 5 years, Kurt Arnusch re-activated mining operations at the site. During the re- <br /> activation a new site access road was created from WCR 71, and a new processing/stockpile/scale area was <br /> created at the SE end of the northern permit area. Although all affected area is owned by the permittee, <br /> these new areas were observed by DRMS to be largely outside of the existing marked permit boundary. <br /> Areas of new excavation created with an end loader were shallow (< 10 feet deep), and largely within the <br /> north permit and Lost Creek channel area (Photos 2 and 3). Topsoil was observed to have been pushed back <br /> and piled in an area located at the NW corner of the north permit area, although this topsoil stockpile is at <br /> least partially out-of-bounds. The overall increase of total affected area means the existing $5000 reclamation <br /> bond will no longer be sufficient to fully reclaim the site. <br /> Due to the out-of-bound impacts noted on June 14, 2022, DRMS returned to the site on June 22, 2022 to <br /> gather GPS data. DRMS used this data to accurately determine the positions of the existing boundary <br /> markers, and determine the affected area currently outside of the marked permit boundary. As previously <br /> stated, the approved permit areas consist of an 8.1 acre northern area and a 1.7 acre southern area for a total <br /> of 9.8 permitted acres. As marked in the field at the time of the inspection (and shown on the attached map), <br /> the northern area was marked at 8.81 acres and the southern area was 1.41 acres for a total of 10.22 acres. <br /> This indicates that the existing boundary markers are incorrectly placed. <br /> Also as shown on the included map, while most of the newly excavated affected area and a portion of the <br /> processing and stockpile area is within the northern permit area (as marked), a minimum of approximately 4.1 <br /> acres of affected area (excavation, stockpile/processing area, scale, and new access road) are outside of the <br /> permit boundary—even as currently marked in the field (Photos 4-6). The observed boundary marker and <br /> financial warranty issues can be resolved through the enforcement process through submittal and approval of <br /> a 110c to 112c permit conversion. <br /> No excavation activity was noted in the southern permitted area, and that area would still be able to be <br /> released from the existing permit if the permittee submits a partial release request. <br /> As stated on the first page of this report, DRMS believes that a violation exists pursuant to: 1.) C.R.S. 34-32.5- <br /> 109(1)for failure to first obtain from the board or office a reclamation permit prior to engaging in a new <br /> operation, or out-of-bounds impact greater than 2 ac. This possible violation will require a hearing before the <br /> Mined Land Reclamation Board. The schedule and other details for the MLRB hearing will be provided under a <br /> separate document to be sent via certified mail to the operator. <br /> Page 2 of 5 <br />