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y <br />• <br />MINE ID # OR PROSPECTING ID # M-1994-011 <br />INSPECTION DATE 12-18-2001 <br />(Page 2) <br />OBSERVATIONS <br />• <br />INSPECTOR'S INITIALS SSS <br />This inspection was conducted at the operator's request to verify reclamation efforts that have taken place to reduce the <br />reclamation liability at this site. The reclamation was being conducted to reduce the reclamation liability at the site because <br />the operators financial warrantor reportedly would not issue a warranty in the amount of $118,628.00 as required by DMG per <br />a reclamation cost estimate calculated on August 15, 2001. The financial warranty was due on November 26, 2001. <br />During this inspection, highwall backfilling and grading was completed on the north highwall of the Feedlot Unit. The highwalls <br />in the North Central Unit had been reduced to approximate 3:1 grade and were covered with topsoil. Depths of replaced topsoil <br />and overburden was not verified during this inspection. All but approximately 2.5 acres of the feedlot unit pit floor have been <br />regraded and all but approximately 4 acres of this unit have had the topsoil replaced. <br />The operator is cautioned to ensure all replacement depths and grades of slopes are in compliance with specifics of the <br />approved reclamation plan before seeding. Seeding must also be in compliance with the approved plan, with verification of <br />seed mix, mulch, application of 1 ton gypsum per acre and fertilizer. <br />Some grading work is being conducted outside the permit boundary near the south side of the permit area around the settling <br />pond. This work is being conducted by the operator for the landowner to improve and increase the pasture areas on the ranch <br />and tie them in with the reclamation features of the permit area. <br />The reclamation cost estimate for this site was recalculated based on the site conditions observed during this inspection in <br />conjunction with the permit requirements. Recent reclamation efforts have reduced the reclamation liability at the site by <br />$26,571. However, during recalculation of the estimate it was discovered that the $9780. cost for installing a fence around <br />the site was left out of the previous calculation. Therefore, the previous estimate should have specified a total reclamation <br />bond amount of $128,408. Current reclamation efforts have resulted in a required reclamation bond amount of $101,837. <br />Completion of three additional tasks would reduce this amount significantly. Backfilling the vertical highwall on the east end <br />of the Northwest unit to a 3:1 slope will reduce the total by almost $14,000. Completing required vegetation tasks (seeding, <br />application of 1 ton gypsum per acre, fertilizer application and mulch application) on the areas of the site where topsoil has <br />been replaced will reduce the revegetation task amounts (tasks 18a and 19a) by up to 30 percent. Additionally, if a technical <br />revision is submitted and approved, addressing changes to the seed mix so it complies with the landowners wishes for alfalfa <br />pasture to be established on the flat areas, this revision could lower the Task 18a amount by as much as $12,000. <br />The lack of adequate financial warranty is still considered to be a problem. A financial warranty in the amount of $101,837 is <br />required to be submitted to DMG by February 19, 2002. If West End Gravel Company chooses to complete additional <br />reclamation tasks to further reduce the bond amount, these tasks must be completed by February 8, 2002. If the seed mix <br />revision is to be submitted, it must be submitted, with the appropriate fee, by no later than January 30, 2002. DMG will allow <br />for one more adjustment of the reclamation cost estimate to account for any additional reclamation and/or revisions to the <br />permit pertormed by the dates set out above. Subsequent to this adjustment, a financial warranty in the calculated amount <br />will be required and future warranty reductions will need to be accomplished through the warranty reduction or warranty release <br />processes specified in Rule 4.13 and/or Rule 4.16 of the Construction Materials Rules and Regulations. <br />Responses to this inspection report should be directed to Steve Shuey at the Division's Durango Field Office. The address <br />is; Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, phone no. 970-247-5062. <br />18 E Contact Address <br />NAME Bob Sutherland <br />OPERATOR West End Gravel Companv <br />STREET P. O. Box 848 <br />CITY/STATE/ZIP Nucla. Colorado 81424 <br />cc: Tom Gillis, DMG <br />CE <br />BL <br />FS <br />HW <br />HMWMD (CH) <br />SE <br />WOCD (CH) <br />OTHER <br />