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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1967-028 <br />INSPECTION DATE 09/28/04 <br />INSPECTOR'S INITIALS ESC <br />This was an aerial inspection of the Lily Minea conducted by Erica Crosby of the Colorado <br />Division of Minerals and Geology. The site was flown on October 5, 2004 as a result of the <br />Division's September 28, 2004 inspection that noted a number of possible violations and <br />problems at the Lily Mines. <br />The aerial photographs clearly define the areas disturbed as a result of the mining activity. <br />As noted in the previous inspection, a site contractor is mining on behalf of Colorado <br />Marble, L.L.C. It was noted in the previous inspection that the operator has disturbed up to <br />20 acres. The 110 permit issued on March 18, 1988 allows for a disturbance of up to 9 acres. <br />The aerial photographs define the areas of mining excavations, waste piles and sediment <br />deposition. <br />Based on the aerial photographs of October 5, 2004, it appears that the operator was present <br />on site conducting mining activity. A number of pieces of equipment were noted such as two <br />dump trucks, one loader and one excavator. These were the same pieces of equipment that were <br />noted during the Division's inspection of September 28, 2004. When the permit was issued on <br />March 18, 1988, a stipulation was placed on the permit. Stipulation No. 1 states that <br />"Operations will only occur between the months of June to September." The stipulation was <br />placed on the permit due to comments from the Colorado Division of Wildlife (DOW) which <br />states that the mine site is located in winter range for both deer and elk and operation <br />during the winter months would seriously impact both species. The DOW recommended that the <br />all mining take place during the summer months (June through September). A copy of the DMG <br />Permit containing Stipulation No. 1 and the DOW evaluation is attached to this report. <br />Based on this information, the Division believes that the operator is in possible violation <br />of C.R.S. 34-32.5-116(1) of the Colorado Land Reclamation Act for the Extraction of <br />Construction Materials for failure to perform the reclamation prescribed by the mining and <br />reclamation plan. Specifically for not complying with Stipulation No. 1 for operations to <br />only occur between the months of June to September. In addition, a possible violation of <br />Rule 3.1.8 for failure to take into account the safety and protection of wildlife on the mine <br />site with special attention given to critical periods in the life cycle of the species which <br />requires special consideration as specified by the DOW. Please see page 3 for further <br />detail. <br />The photographs will assist the Division in calculating a reclamation cost estimate based on <br />the extent of the disturbance. The Division currently holds a bond in the amount of <br />$24,000.00. This amount is not adequate to properly reclaim the aite. The Division will <br />revise the reclamation cost estimate and notify the operator of any bond increase under <br />separate cover. <br />2 & 8 Contact Addreas <br /> <br />NAME Mr. Bill Addison ~ <br />OPERATOR Colorado Marble, L.L.C. <br />STREET 15960 E. Cherokee Drive ~ <br />CITY/STATE/ZIP <br />Ball Ground, GA 30107 <br /> <br />CE <br />BL <br />HW <br />HMWMD (CH) <br />SE <br />WQCD (CH) <br />cc: Carl Mount; DMG (via a-mail) <br />