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<br />MINE ID # OR PROSPECTING ID # M-1990-025
<br />INSPECTION DATE 10/27 03 INSPECTOR'S INITIALS WHE
<br />OBSERVATIONS
<br />This inspection occurred as part of DMG review of the operator's request for release of 7.8 acres for completion of
<br />reclamation (AR-03). The Hay Camp Pit is approved for 460 acres affected area. DMG holds $166,615 financial
<br />warranty. Mining and reclamation activities were active.
<br />Mine identification sign was posted. Boundaries of affected lands were delineated. Mining and reclamation
<br />activities appeared to be occurring in accordance with permit conditions and the Act and Rules.
<br />AR-03: Appearance of the 7.8 acres area addressed under AR-03 was consistent with the descriptions provided
<br />in the release request. 8ackfilling and grading had resulted in stable slopes, approximately 4H:1 V, which blended
<br />well with adjacent reclaimed lands and undisturbed areas. Vegetative cover was well established, diverse and at
<br />least equal in extent of cover to surrounding undisturbed lands. Observations made during the inspection and
<br />recorded in this report indicate that the operator has completed reclamation forthe 7.8 acres addressed in AR-03 in
<br />accordance with the approved reclamation plan and Act and Rules. On November 25, 2003, DMG approved AR-
<br />03. Permit area is reduced to 452.2 acres.
<br />Financial Warranty: On August 26, 2002, DMG calculated the cost of reclamation at $168,615. The operator is
<br />conducting reclamation activities concurrently with the mining and has recently completed reclamation grading for
<br />approximately 12 acres in addition to the 7.8 acres addressed under AR-03. The existing $168,615 financial
<br />warranty is sufficient to ensure reclamation. Under AR-03, the operator did not request adjustment in the bond.
<br />Permit History: The original 110c permit was issued on 5/22/90 to Blasting & Mining, Inc., for 9.9 acres affected
<br />area, financial warranty set at $5,000. On 10/19/95, the Board issued Notice of Violation MV-95-071, for mining
<br />beyond the approved permit boundary. Corrective action for MV-95-071 was to convert the 110c permit to a 112c
<br />permit to include all (ands affected by the mining activity. On 11/16/95, DMG approved conversion of the permit to a
<br />112c permit (CN-01), for 87.62 total acres, financial warranty increased to $62,070. On 3!3/99, DMG approved
<br />transfer of permit for Hay Camp Gravel, Inc., as successor operator (SO-01). Under SO-01, cost of reclamation
<br />was calculated at $57,001, however, the amount of financial warranty remained at $62,070. On 9/25/00, the
<br />operator withdrew a request for release of 5.03 acres affected area (AR-01). On 12/1/00, DMG approved transfer of
<br />permit for Four States Aggregates, LLC, as successor operator (SO-02), tlnancial warranty approved at $62,000.
<br />On 7/18/01, DMG approved release of 6.0 acres (AR-02) for completion of reclamation. Under AR-02, permit
<br />acreage was reduced from 87,62 acres to 81.62 acres. On 12/11/02, DMG issued AM-01, expanding the permit
<br />area to 460 acres artd increasing the financial warranty to $168,615. UnderAM-01 the 80 acres permit area forthe
<br />Gardner Pit, Permit No. M-1985-172, was incorporated into the Hay Camp Pit. UnderAM-Ot the name of the permit
<br />was changed from Gardner Pit 2A to the Hay Camp Pit.
<br />No problems or possible violations were observed.
<br />Response to this report should be addressed to W ally Erickson, Division of Minerals and Geology, 701 Camino de{
<br />Rio, Room 125, Durango, CO 81301, phone (970) 247-5469.
<br />I & E Contact Atldress
<br />NAME Anrol Brumley
<br />OPERATOR Four States Aggrecates. LLC
<br />STREET P.O. Box 1568
<br />CITY/STATFJZIP Cortez. CO 81321-1568
<br />cc: Harry Posey, DMG
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