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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1984-001 <br />INSPECTION DATE: 1-24-07 <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Divi sion of <br />Reclamation, Mining and Safety for permitted sites. The Surface Rock Pit had a Succession of Operator (SO) <br />November 9d', 2006 from Unaweep Ventures to Pazkerson Construction. Part of the SO Policy is for the Division to <br />inspect the site and recalculate the Reclamation Liabilityto assure adequate bonding. Mr. Allen Parkerson, principai <br />for Pazkerson Construction accompanied the inspector on site. <br />Pazkerson Construction is currently proceeding with reclamation of both Site A and B. Site A has a very large pile <br />of what was classified as waste rock that runs pazallel to Highway 141. Parkerson is digging up the rock and <br />screening it for useful product. The fines are being transported to Area B to augment reclamation of slopes or off <br />site. The operator is stopping once the contact with native materials is made. As noted in the accompanying <br />pictures, the primary native material appeazs to be lazge granite boulders and talus like material. Parkerson is <br />working very hard at keeping native vegetation such as pinion and juniper to further maintain stability ofthe slopes. <br />The inspector notes that it appears the slopes are 2:1 and if less solid rock at this time. <br />In Area B, Pazkerson is depositing fines which are road base in nature along the toe ofthe steep slopes to reduce the <br />angle to 2:1 or better. Boulders and other stone will be used judiciously to help fortify the toe ofthe slopes and aeeas <br />where benching may not be affective. Compaction of the materials is being done as trucks and loaders drive over <br />the dump areas. The plan that was discussed was to bench the area to reduce slope lengths and to blend the top <br />bench from to 2:1 to the top of the excavation as best as possible. This will leave the existing 3:1 sight berm that is <br />vegetated alone as much as possible. <br />Under normal circumstances the Division would recalculate the bond based on current conditions. But the site is in <br />active reclamation and very little to no additional excavation is anticipated at this time. Therefore the inspector feels <br />that a bond recalculation is not warranted as the conditions will be changing very rapidly. Since Pazkerson plans to <br />complete reclamation by early summer, the inspector feels it would be more prudent to re-inspect the site then and <br />possible do a bond reduction if all earth work and a first seeding aze completed. Staff is requesting that Parkerson <br />notify the Division once the reclamation is close to completion or finished so that the bond issue maybe addressed <br />properly. At this time, the current bond appears to be adequate and not an issue. <br />No problems or issues are noted at this time. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. <br />970-241-1117. <br />I & E Contact Address cc: <br />^ CE <br />NAME: Allen Parkerson ^ BL <br />OPERATOR: Pazkerson Construction ^ FS <br />STREET: 710 S 15th Street ^ Ham' <br />CITY/STATE/ZIP: Grand iunction, CO 81501 ^ HMWMD (CH) <br />^ WQCD (CH) <br />^ OTHER <br />