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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1989-023 <br />INSPECTION DATE 08/04/2006 <br />INSPECTOR'S INITIALS DEG <br />OBSERVATIONS <br />This routine monitoring inspection of Permit Number M-1989-023 was conducted by Deb E. Gbnima of the DMG. Clyde Couch <br />(Permittee/Operator) was present during the inspection. The site is located approximately 1 mile northwest of Proctor on <br />County Road 65. The permit area consists of approximately 2.5 acres and is known as the Caliche School Pit. <br />Given the map submitted with the operator's most recent annual report and the small footprint of disturbance, it appeared that <br />all disturbance related to this permitted operation has occurred inside the approved permit boundaries (see photos 1-4). A <br />portion of the northern fenceline may have constituted a boundary marker. However, since this site lacked clearly <br />distinguishable permit boundary markers, this inspector was unable to verify that the operator is mining within the approved <br />permit boundaries. Therefore, per Rule 3.1.12(2) the operator must clearly mark the boundaries of the affected area with <br />monuments or other markers that are clearly visible and adequate to delineate such boundaries (see Problem No. 1 and the <br />corresponding corrective action noted on page 3 of this report). <br />In addition, it appeared that mining activitywas occurring on an adjacent portion of the property. However, after examining our <br />permit database to find a permit for that operation, no permit was found. This inspector phoned Mr. Couch and informed him <br />that this adjacent operation, while separate from the Caliche School Pit, must be permitted, as well. Mr. Couch was extremely <br />helpful and provided the contact phone number for the Operator who is moving the material for both the permitted site and the <br />adjacent, possible illegal site. This inspector will contact the Operator, Mr. Ben Winemiller, and schedule an inspection to <br />confirm the adjacent operation's possible illegal status. Further action for the adjacent operation will be sited more thoroughly in <br />a separate inspection report. <br />This inspector observed some rusted metal debris on the mine site (see photo 3). If not being used for the active mine <br />operation, all of this debris must be legally removed from the site on or before September 7, 2006 (see Problem No. 2 on pg. <br />3). <br />A topsoil stockpile (of approximately 5 cubic yards) appears to have been scraped and salvaged, and has been placed at the <br />southern end of the top of the Caliche plateau (see Photo 2). Material continues to be excavated from the highwall and hauled <br />offsite (see Photo 1). According to the approved mining plan this site has a historically "open pit face" and "has been stripped" <br />of topsoil. At this time, no material processing takes place on site, and there was no residual material stockpile. No erosion <br />issues were observed. The mine entrance sign was in place. <br />At the time of this inspection there appeared to be no offsite erosion, and no long-term (greater than 72 hours) water retention <br />was observed. <br />All other activities and completed work at the time of inspection appeared to follow the guidelines and regulations set forth by <br />the state and in the mining and reclamation plans for the pit. <br />Mr. Couch inquired about filing his annual report for this site, and payment of his annual fee. The address the Division has on <br />file is out-of-date, and the notice appears to have been sent to the Permittee's previous address. Mr. Couch provided this <br />inspector with his current address and his address for his seasonal residence in Arizona. These addresses have been updated <br />in our permit system and Mr. Couch shall be receiving a notice to file his annual report and pay his annual fee shortly. <br />As a final note for future reference, this site is correctly positioned in the DMG online GIS. <br />Responses to this inspection report should be directed to Deb E. G6nima at the Division of Minerals and Geology, Denver <br />Office, 1313 Sherman Street, Room 215, Denver, Colorado 80203, phone number 303-866-4179. <br />18 E Contact Address cc: <br /> ^ CE <br />NAME Mr. Clvde Couch ^ BL <br />OPERATOR ^ FS <br />STREET 122 State Street ^ HW <br />CITY/STATE/ZIP Sterlino. CO 80751 ^ HMWMD (CH) <br /> ^ SE <br /> ^ WOCD (CH) <br /> ^ OTHER <br />cc: Carl Mount, DMG via a-mail <br />