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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-4i-nn~ <br />INSPECTION DATE: ~J1'i/03 INSPECTOR=S INITIALS: TQS <br />OBSERVATIONS <br />1. Apre-operation inspection was conducted of the Hogue/River Pit. The site is located 6 miles west of Steamboat <br />Springs along US Highway 40. Present during the inspection was Fred Duckels and Paul Currier (consultant for <br />the operator). <br />2. The operator is currently permitted for S1 acres with 38 acres of maximum disturbance. Duckels Construction <br />Inc. has proposed a 13 acre expansion of the disturbed area to allow for the entire 58 acres to be disturbed. The <br />operator has submitted a permit amendment to process this request. This inspector reviewed the entire 51 acre <br />site. A discussion was held regarding the need for an inlet and outlet spillway due the proximity of the pit to the <br />Yampa river. Mr. Currier confirmed that the pit would not be flooded or "captured" by the river unless there was <br />a Flood event of the magnitude of at least a 50-year Flood. In addition, the pit is at least 500 feet outside the <br />floodway of the Yampa River. Based on these findings, this inspector verified that the Division would not require <br />inlet or outlet spillways during the mining phase or as part of final reclamation. The reclamation specifies creation <br />of an unlined, groundwater fed lake. <br />3. This inspector confirmed that the mine and existing disturbance maps submitted as part of the amendment <br />application (AM-1) accurately depict the current disturbance at the site. Also, this inspector verified there are no <br />permanent structures that will need to be removed during final reclamation. Based on the existing disturbances <br />and additional 13 acres of affected land, this inspector has calculated a total reclamation cost of $51,000. This <br />amount will be adequate to complete reclamation of 51 disturbed acres. Please see the attached reclamation cost <br />estimate. Therefore, the existing financial warranty of $61,300 is more than adequate to complete reclamation of <br />the existing and proposed disturbance. <br />I & E Contact Address <br />NAME: Cheryl Driggers <br />OPERATOR: Duckels Construction. Inc. <br />STREET: 3500 Duckels Court <br />CITY/STATE/ZIP: Steambnat S rp ing5, CO 80487 <br />cc: Carl Mount, DMG (via E-mail) <br />Attachment <br />