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(Page 2) <br />MINE ID # OR PROSPECTING ID #: ~~-~nns_m~ <br />INSPECTION DATE: d1131ns INSPECTOR=S INITIALS: ,a iw <br />OBSERVATIONS <br />This inspection was conducted by Tony Waldron, representing DMG, in response to two anonymous complaints <br />received on April 8 and April 12, 2005. Both complaints allege that un-permitted mining is occurring on a parcel <br />of property near the town of Segundo, Colorado. Both complaints allege that mining is occurring and one <br />indicates that material is being hauled off site. <br />The small town of Segundo is located approximately 14 to 15 miles west of Trinidad, Colorado and is mostly <br />situated on the north side of the Purgatoire River. The disturbance in question is located on the south side of the <br />river and on the flank of a hill-slope just up and out of the valley and west of a shop and yard area awned by <br />Purgatoire Valley Construction (PVC). There is o small portable office set up in this area but no one was around <br />at the time of the DMG visit. Heading west to the observed site, there was a small track-hoe and a <br />crusher/power screen on site in a disturbed area approximately 1 acre in size. There was also a small stockpile <br />of screened material at this location. Clearly, mining is occurring on the site. <br />However, upon leaving the site the inspector ran into Ray Moltrer, one of the managing partners of PVC. Mr. <br />Moltrer indicated that all of this mined and stockpiled material was being used to gravel and maintain roads on <br />their property along with creating a graveled surface area for their construction yard. Mr. Moltrer was informed <br />that the exemption for mining and using material applies to contiguous property owned and controlled by the <br />same person. He indicated that he understood the policy, however, PVC had not Contacted DMG to request <br />a declaratory order exempting them from the need to obtain a reclamation permit, which is not required but is <br />suggested. Since there are conflicting stories about the use of the mined material, the inspector requested <br />that PVC complete an "IS it Mining "questionnaire which will result in the generation of a letter from our office <br />either exempting the activity from the need to obtain a reclamation permit or requiring that a reclamation <br />permit be obtained to conduct the mining. The questionnaire is attached to this report and should be <br />completed and returned to our office by May 6, 2005 to avoid the issuance of a possible violation letter that <br />would automatically require an appearance before the Mined Land Reclamation Board. If there are any <br />questions, please contact Tony Waldron at (303) 866-4926. <br />I & E Contact Address <br />NAME: Ray Moltrer <br />OPERATOR: ~fgataire Valley Construction. Inc <br />STREET: 117 Pina SiraPt <br />CITY/STATE/ZIP: Trinirind CC) R10A9 <br />cr. r CE <br />t BL <br />r FS <br />I HW <br />I' HMWMD (CH) <br />t SE <br />I' WQCD (CH) <br />I' OTHER <br />