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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2000-098 <br />INSPECTION DATE 08/10/07 INSPECTOR'S INITIALS ESC <br />OB3$RVATION3 <br />This was an inspection of the Monarch Quarry conducted by Erica Crosby of the Colorado <br />Division of Reclamation, Mining and Safety. Tracy Gunn of Colorado Lime Co. was present <br />during the inspection. <br />The Monarch Quarry is located 26 miles west of Salida in Chaffee County, Colorado. The site <br />is situated at an elevation of approximately 10,000 feet. The permit was issued on January <br />15, 2003 for 201 acres. The Division holds a reclamation bond in the amount of $100,000.00. <br />The operator is currently removing the old CF&I waste dump and hauling the material to the <br />plants in Delta or Salida. The material is used as rock dust for coal mines in the state. <br />The operator estimates the amount of material in the pies between 4.5 and 5 million tons. <br />Due to the large quantity of material in the piles, no new areas will be excavated in the <br />near future. <br />The operator is in the process of constructing a new haul road on the property. The haul <br />road is necessary in order to access the piles on the northeast end of the property. The <br />current access road is located on land not owned by Colorado Lime Co, and access to the site <br />ie limited. The operator will need to describe and locate the new haul road/access road in <br />the mining and reclamation plane in the form of a revision to the permit. See page 3 for <br />corrective action due dates. <br />The new haul road bisects the existing sediment pond at the base of the mine. It is unknown <br />how the pond will function with the construction of the new haul road. The operator will need <br />to address the design, use and function of the pond to take into account the new alignment of <br />the access road/haul road in the form of a revision to the permit. See page 3 for <br />corrective action due dates. <br />I & 8 Contact Addreea <br />^ CE <br />NAME Mr. Tracy Gunn ^ BL <br />OPERATOR Colorado Lime Company <br />STREET 1468 Hwy 50 ^ HW <br />CITX/STATE/ZIP Delta, CO 81416 ^ HMWMD (CH) <br />^ SE <br />^ WQCD (CH) <br />cc: Carl Mount; DRMS <br />