2022-12-12_INSPECTION - M2022051

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PERMIT#:M-2022-051 INSPECTOR'S INITIALS:ACY INSPECTION DATE:December 6,2022 OBSERVATIONS In late May of 2022 the Colorado Division of Reclamation Mining, and Safety (Division) was contacted by ICH Scott, Inc. (the Operator) about potentially needing a permit to remove borrow material to be used in conjunction with a CDOT project on Highway 13. Staff indicated that based on the details provided that the work scope would fall under the Divisions jurisdiction and that a permit should be applied for prior to commencement of activities. On November 2, 2022, I, Amy Yeldell with the Division, was driving back from inspections in Rio Blanco County and observed a large excavation located on the east side of Highway 13. Crews were actively removing borrow material and transporting it further south down Highway 13 to be used as fill material for highway improvements. After internal discussions with Division staff, I contacted the Operator on November 10, 2022. 1 spoke with Tony Roberts, VP of Operations for IHC Scott, Inc. He confirmed that the company did in fact have a contract with CDOT for the improvements of Highway 13. The project started earlier in 2022 and that the project was estimated to conclude in September of 2023. Furthermore the project was wrapping up for the season and that crews would soon be grading the majority of the slopes until activities could recommence in the spring (approx. April 2023). The Division explained to Mr. Roberts the reasons why we believe this may be a jurisdictional matter and set up an inspection for December 6, 2022 to investigate further. Following the phone discussion, via email, the Division provided Mr. Roberts and Chris Hurley, the company's attorney, the following Division forms; 'Is it mining?' questionnaire, the 111 permit application and the 'Consent for Access to Property'. The Division reiterated that if ever in question to submit the; 'Is it mining?' questionnaire to get a determination from the Division as to if a permit is required. Also, based on the information provided a 111 permit would likely be necessary so the Operator could begin working on application materials prior to the inspection. On December 6, 2022, Amy Yeldell of the Division met Tony Roberts and Chris Hurley of IHC Scott, Inc. on site. The site is located in Rio Blanco County approximately 14 miles northwest of Rifle Colorado on the east side of Highway 13. The physical address is 17410 Highway 13, Meeker Colorado 81641. The property is owned by Shane Collett. The landowner was not present for the inspection. Prior to entering the site the Division did obtain a completed Consent for Access to Property form which was completed by Mr. Roberts. While on site, staff explained key activities that are indicative of requiring a mining permit and the types of DRMS permits. The operator explained why they didn't think the activity constituted mining and thus a DRMS permit would be required. Mr. Roberts indicated that the post-mine land use for the site would be an agricultural storage/shed and future home site, both of which require the flat pad area, which would result from the excavation of borrow material. The Operator expressed a willingness to obtain a Special 111c permit if determined to be necessary by the Division. Staff walked the perimeter of the affected lands with a GPS and estimated it to be 8.5 acres. Note that it snowed approx. 3 inches the night before and bare ground was not visible. However the Operator did strip the topsoil therefore disturbed vs undisturbed lands was evident. Brush and woody material was also salvaged in two piles. The Division did not clarify the Operators intentions for this woody material. The borrow area consists of two main sites. Excavations in the northern area have concluded and the site has been regraded. Topsoil remains stockpiled at the top of the slope and will be replaced this coming spring and Page 2 of 15