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(Page 2) <br />MINfi ID # OR PROSPECTING ID # M-77-129 ~ <br />INSPECTION DATE 6-19-98 INSPECTOR'S INITIALS SSS <br />OBSERVATIONS <br />This inspection of the Whitewater Pit 500 was conducted to obtain pickures and measurements <br />of structures and facilities on site for use in recalculating the reclamation cost estimate <br />to ensure adequate financial warranty is held to reclaim this site acebrding to the approved <br />reclamation plan. <br />Prior to conducting the facilities measurements, Mr. Edward Gardner, the operator's <br />representative, drove this inspector around the facilities area and Stage 2 Pit area of the <br />site for orientation purposes. During this time the Division pointed out that Russian <br />knapweed infestations were abundant in almost all locations of the site that were observed. <br />The operator stated it was unfortunate that measures to kill knapweed kill all other <br />vegetation as well. The Division pointed out that, due to the allelopathic traits of <br />knapweed, it will kill nearly all of the other vegetation anyway and will then occupy that <br />location. Therefore, it is better to control the knapweed and revegetate the area with <br />desirable species of vegetation. <br />The operator was informed that the Division can not approve release of the reclamation bond <br />for a mine site that is infested with noxious weeds. The operator responded that Whitewater <br />Building Materials Corp. did not care if the Division released the bond because the operator <br />owns the land where the mine site is located and therefore has no other landowner pushing for <br />termination of the reclamation permit. Actually, portions of the site are leased from <br />another landowner. The Division informed the operator that recent heightened concern of <br />counties and the NRCS, over noxious weeds has prompted the Division to draft a new weed <br />control policy and that the new policy allows an operator of a weed infested site up to three <br />years to show significant progress in correcting the weed problem. Failure to show <br />significant improvement within three years may result in an enforcement action by the <br />Division. This policy is currently in draft form (copy enclosed) and it's adoption will be <br />formally considered by the Mined Land Reclamation Board in the near future. <br />The need for timely and effective weed control at this site is essential in light of the <br />White water 500 Pit being one of the largest suppliers of construction material in Mesa <br />County. Failure to control significant on-site infestations of one of the most vigorous and <br />persistent noxious weeds in .Colorado results in potential export and area-wide distribution <br />of large quantities of Russian knapweed seed with every truckload of material. Therefore, <br />the Division is requiring that, by August 7, 1998, the operator submit a revision to Permit <br />M-77-129 which incorporates an adequate weed control plan into that permit. The weed control <br />plan should be developed in consultation with the appropriate weed control authority for Mesa <br />County. A copy of this report will be forwarded to that authority. <br />The operator was informed that the remaining inspection time would be used to measure <br />structures on site for demolition and disposal costs to be included in the reclamation cost <br />estimate update recalculation. The operator indicated that they did not agree that removal <br />of these structures, mainly concrete footers and pads, needed to be included in the bond. <br />The operator indicated that this was Whitewater Building Materials Corp. property. <br />Therefore, it could be left as the operator sees fit, and that Whitewater Building Materials <br />Corp- would fight any attempt to bond for removal of the structures. The Division informed <br />the operator that, to obtain the reclamation permit, Whitewater Building Materials Corp. <br />signed documents promising compliance with, and to be bound by, all requirements of the Mined <br />Land Reclamation Act and the Rules and Regulations, as well as all terms of the permit. If <br />structures are desired to be left, which support the post-mining land use of a cattle feeding <br />area, then the operator may revise the permit to address leaving these structures ae <br />permanent features. However, large concrete blocks, such as those used as conveyor tower <br />