INSPEC03601

• Permit No: M1978056
• IBM Index Class Name: Inspection
• Doc Name: Inspection Report
• From: DMG
• To: Tusco Inc.
• Inspection Date: 1/9/2003
• Media Type: D
• Archive: No

MINE ID # OR PROSPECTING ID #: M-iavR-ns~
INSPECTION DATE: i/5/nz INSPECTOR=S INITIALS: ~_
OBSERVATIONS
1. A site inspection of the Durham-Pit 117 was made as part of the Division's 4-year inspection program. The site is
located 1.5 miles east of Greeley, between the Cache La Poudre river and 16th Street. Present during the inspection was
Brad Janes of Varra Companies, Inc.
2. Review of the permit file indicates the Durham-Pit 117 is permitted for either 163.99 acres or 229.89 acres. It is
unclear which is the appropriate permitted acreage. The application form lists 163.99 permitted acres, while the legal
description, mine and reclamation plan narrative, and mine and reclamation plan maps indicate 229.89 acres. The mine
plan specifies wet mining and creation of a 128.4 acre lake. Shorelines and surrounding areas are to be graded to
maximum slopes of 3:1 and 2:1 respectively, topsoiled, and revegetated with a grass mix. The mine and reclamation plan
also references several abandoned gravel pits within the 229.89 parcel. It is unclear whether the 128.4 acre reclaimed
lake is to be in addition to the 27.45 acres of abandoned gravel pits in existence at the time of permit issuance or whether
the 128.4 acre lake includes the pre-existing abandoned gravel pits. The operator has posted a financial warranty of
$37,800 in the form of a corporate surety. The post-mining land uses are wildlife habitat, recreation, and agricultural use.
The Division considers the uncertainty of the permitted acreage and acreage of reclaimed lake surface to be a problem
that will require corrective actions. Please see page 4 for corrective actions.
3. The majority of the site is disturbed, with the exception of the southwest corner where there is approximately 4 acres
undisturbed, and 7 acres of minimal disturbance in need of weed control and revegetation. This inspector estimates there
are approximately 170 acres of disturbance based on site observations and a copy of a 1997-1998 aerial photograph of
the site provided by Mr. Janes. This inspector notes the following disturbances: 1) two lakes with 8398 linear feet of
unreclaimed shorelines and with total water surface of 33 acres, 2) 58 acres of active pit at an approximate depth of 30'
with approximately 10,209 linear feet of 0.5/1 pit walls, 3) 4 acres of minor pit disturbance at an approximate depth of 10'
with 1795 linear feet of 0.5/1 pit walls, 4) 6 acres of shop and equipment storage, 6) 53 acres of plant, processing, and
stockpile area including a concrete plant, 6) 5 acres of miscellaneous, moderate disturbance, 7) 12 loads of non-roadable
mining equipment, 8) 3 large fuel tanks, 9) 16130 cubic yards of stockpiled, broken concrete, 10) a flood control berm in
the Phase X-A area composed of overburden and soil materials, 11) approximately 250,000 cubic yards of stockpiled
topsoil, and 12) approximately 350,000 cubic yards of stockpiled overburden. (The topsoil and overburden volume
estimates are based on an assumed average topsoil depth of 12"and overburden depth of 36" over the entire affected
land). Based on the disturbances noted, this inspector estimates a reclamation cost of at least $300,000 based on 133
acres of disturbance at $2,000/acre and an approximate de-watering cost of $34,000. (De-watering of existing lakes is
necessary in order to complete finish grading of shoreline slopes). Therefore, the existing financial warranty of $37,800 is
insufficient to complete the reclamation plan. The Division considers the matter of an insufficient bond to be a problem
that will require corrective actions. Please see page 4 for corrective actions.
4. Varra Companies,Inc. is currently working in the eastern portion of the permit area. The operator was in the process of
re-mining the abandoned pit in the northeast corner by de-watering and excavating down to a shale layer. The operator
was also stripping aggregate materials in the southeast corner. This inspector and Mr. Janes estimated an average pit
depth of 30' with pit slopes at a 0.5/1 configuration. The shoreline slopes of existing ponds were also estimated to be a
0.5/1 slope and pond depths were estimated to range from 12-15'. This inspector noted there were no affected lands
that were found to be backfilled & graded to reclamation contours, topsoiled with at least 12 " of topsoil, and revegetated
with the approved grass seed mix. At the time of inspection, there was off-site discharge of process water from the
northern boundary of the permit into the Poudre river. Review of the permit does not specify de-watering, dry mining, or
off-site discharge of process waters, and there is no evidence of an approved NPDES water discharge permit from the
Water Quality Control Division and/or approved well permit, temporary substitute supply plan, or water augmentation plan
from the Office of the State Engineer (OSE). Attached is correspondence from the OSE indicating the need for a
permanent augmentation plan. Also, there is no evidence in the permit file to verify the acreage of ground water surface
exposed as of December 31, 1980 that would exempt the operation from evaporative loss make-up requirements. The
Division will forward a copy of this report to the Water Quality Control Division and to Office of the State Engineer for
further review. Further, the Division considers the matter of de-watering and dry mining to be a possible violation of the
mine plan which specifies wet mining methods. The Division will be forwarding a Reason to Believe (RTB) letter to the
operator of a possible violation and scheduling them for a hearing at the February 26-27, 2003 Board Meeting. Please see