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(Page 2) MINE ID # OR PROSPECTING ID # M-1976-027 INSPECTION DATE 2/28/05 INSPECTOR'S INITIALS RCO OBSERVATIONS This partial inspection was performed by the Division as part of its monitoring of Construction Materials 112c permits, and to discuss possible revisions the operator is considering at the site. The operator's representative named on page one was present during the inspection. The required permit ID sign was posted at the entrance to the processing and stockpile area at the permit. Numerous permit boundary markers were noted along the boundary. A few appeared to be missing, either because they would be within the landowner's hayfield and would impede the agricultural operation, or due to some recent stormwater berming near the scales in the stockpile area. Though this is not noted as a problem, the operator must endeavor to accurately locate and install all missing markers there (and elsewhere along the boundary, as applicable). These must be in place before applying for any changes, especially if revised maps are involved. The upcoming changes being considered by the operator include a change to the scale location, a slight realignment of the access road, and a possible amendment for additional land for excavation or on which fo set up a hot mix plant. The operator stated that the scale and road are sometimes used by the landowners in their ranch operation. The site was active at the time of the inspection. Equipment noted onsite included wheeled loaders, haul trucks, conveyors/slackers, crushers and diesel power plant, all being operated. The mining plan is phased, and the operator is following the approved phases. Excavation was occurring in the southeast part of the pit, with crushing occurring in the pit and processed product being conveyed up to the filled bench level west of the pit for stockpiling. Highwalls are steep on the north and east sides of the pit, and are nearly 100 feet high in places. There is a large percentage of reject material generated during processing, and deep overburdens, both of which materials are used in the pit backfilling. Such fill was used for creating the west stockpile bench. There were several large stockpiles of various materials west of the pit, including base course and clean gravel for asphalt production, which contained tens of thousands of yards and filled the stockpile area. Given the depth of the pit, the proximity of the north and south boundaries, and the amount of backfilling already performed on the west, the pit floor is not large enough at this time to be able to accept more backfill material. Until the active highwall (on the east) advances further, space far operations will be limited. Eventually, backfill in the pit will raise the rest of the pit floor to an elevation about 30 feet higher than it is now. The salvaged overburden and topsoil are bermed along the top of the north highwall, along the west permit boundary, and mainly above the east highwall. The pit has not expanded to the eastern permit boundary yet; the boundary is still another200 feet east of the pit. To mine further to the east will require that a significant amount of overburden and topsoil must be moved, as well as the removal of the pinon and juniper vegetation. A portion of the north inslope of the pit, just east of the ramp road into the pit, has been sloped and topsoiled. The gradient appears to match the reclamation plan, but vegetation is still incomplete there The bond amount is $94,693, and is the amount calculated at the time of approval of TR -02 four years ago. Another bond calculation will be performed by this office and, if an increase is indicated, the figures will be sent to the operator for review. No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no.970-247-5193. I & E Contact Address cc: Harry Posey, DMG ^ CE NAME Craig Wickstrom ^ BL OPERATOR Nielson's Skanska. Inc. ^ FS STREET PO Box 1660 ^ HW CITY/STATE/ZIP Cortez. CO 81321 ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER