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(Page 2) <br />MINE ID # OR PROSPECTING ZD # M-1995-035 <br />INSPECTION DATE 03/28/06 <br />INSPECTOR'S INITIALS ESC <br />This was a follow-up inspection of the Division's 12/20/2005 inspection of the Wellington <br />Downs Pit conducted by Erica Crosby of the Colorado Division of Minerals & Geology. John <br />Warren of Connell Resources, Bill Schenderlein of Applegate Group LLC, and Eric Reckentine <br />and Tim Neison of Lafarge West Inc. were present during the inspection. <br />Summary: <br />The purpose of the inspection was to evaluate the ongoing reclamation of the Connell <br />Resources Stute Pit (M-1981-007) and the Wellington Downs Pit (M-1995-035) and its possible <br />impacts to the adjacent Weitzel Pit (M-1986-050) operated by Lafarge West, inc. The three <br />pits are oriented on the west side of I-25 south of the Harmony Road Exit (Highway 68) in <br />Larimer County. The most northern pit ie the Stute Pit, which is actively being reclaimed to <br />a 3.5 acre lined pond and backfilled with inert material generated from off site. <br />Immediately south of the Stute pit is the Weitzel Pit. The Weitzel pit has been reclaimed to <br />three groundwater-exposed lakes. Immediately south of the Weitzel pit is the wellington <br />Downs Pit operated by Connell Resources. The Wellington Downs Pit has been reclaimed with a <br />compacted backfill liner to a water storage reservoir. <br />Stute Pit (M-1981-007)e <br />Reclamation of the Stute Pit was taking place during the inspection. Connell is reclaiming <br />the site to a 3.5-acre lined pond and backfilling the remainder of the pit above the <br />groundwater table (also observed in the Division's inspection of 12/20/05). A trench had been <br />dug between the Stute Pit and the Weitzel pit in order to facilitate pumping of the <br />groundwater from the Stute Pit. According to Connell, pumping of the Stute pit into the <br />Weitzel pit occurred from mid January to mid February 2006. Pumping of water into the <br />Weitzel Pit ceased for approximately 3 weeks. A review of the Stute Pit file contains no <br />information on groundwater levels or a groundwater-monitoring program. <br />As noted in the Division's 12/20/05 inspection, the 1981 reclamation plan states that the <br />area will be reclaimed to two lakes with a 60-foot roadway between the lakes and a 450- <br />foot backfilled strip along the East property line. According to the annual report maps <br />in the file, one of the lakes was backfilled completely in 1994, which contradicts the <br />approved reclamation plan of two lakes. In addition, the operator stated that it is their <br />intent to backfill and line the remaining lake with a compacted clay liner to no longer <br />expose groundwater. Connell Resources is not reclaiming the site as approved in the <br />reclamation plan in terms of reclaiming the site to two groundwater-exposed lakes. In <br />addition, Connell is decreasing the size of the lake with the disposal of inert fill. <br />The Division believes that this is a possible violation of C.R.S. 34-32.5-116(1) of the <br />Colorado Land Reclamation Act for the Extraction of Construction Materials for failure to <br />follow the approved mining and reclamation plan. Notice of violation will be sent under <br />separate cover. <br />Connell Resources will need to revise the reclamation plan to eliminate all or a portion <br />of the ponds or other components of the reclamation plan in the form of an amendment to <br />the permit on or before June 1, 2006. See problem #1 for more detail. (The operator <br />submitted a technical revision to the permit to address this issue, however the revision <br />was returned to the operator requesting a letter stating that Applegate Group was allowed <br />to submit the revision on behalf of the operator. However, the Division considers this <br />change in the reclamation plan to be significant and it should be submitted as an <br />amendment to the permit.) <br />Weitzel Pit (M-1986-050) <br />During the Division's inspection of the Weitzel Pit on March 7, 2006, a number of problems <br />were noted regarding the water level and drainage of the site. In order to facilitate <br />backfilling of the Stute Pit, Connell Resources dewatered into Phase 1 of the Weitzel Pit. A <br />channel between the two pits was excavated to facilitate dewatering. In doing so, a portion <br />of the northern berm on the Weitzel pit was breached. Connell has repaired this breach with <br />