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(Page 2) MINE ID # OR PROSPECTING ID #: nn_~nn5_p ~ INSPECTION DATE: ~./1~/ns INSPECTOR=S INITIALS: A IW OBSERVATIONS This inspection was conducted by Tony Waldron, representing DMG, in response to two anonymous complaints received on April 8 and April i2, 2005. Both complaints allege thal un-permitted mining is occurring on a parcel of property near the town of Segundo, Colorado. Both complaints allege that mining is occurring and one indicates that material is being hauled off site. The small town of Segundo is located approximately 14 to 15 miles west of Trinidad, Colorado and is mostly situated on the north side of the Purgatoire River. The disturbance in question is located on the south side of the river and on the flank of a hill-slope just up and out of the valley and west of a shop and yard area owned by Purgatoire Palley Construction (PVC). There is a small portable office set up in this area but no one was around at the time of the DMG visit. Heading west to the observed site, there was a small track-hoe and a crusher/power screen on site in a disturbed area approximately 1 acre in size. There was also a small stockpile of screened material at this location. Clearly, mining is occurring on the site. However, upon leaving the site the inspector ran into Ray Moltrer, one of the managing partners of PVC. Mr. Moltrer indicated that all of this mined and stockpiled material was being used to gravel and maintain roads on their property along with creating a graveled surface area for their construction yard. Mr. Moltrer was informed that the exemption for mining and using material applies to contiguous property owned and controlled by the same person. He indicated that he understood the policy, however, PVC had not contacted DMG to request a declaratory order exempting them from the need to obtain a reclamation permit, which is not required but is suggested. Since there are conflicting stories about the use of the mined material, the inspector requested that PVC complete an "Is it Mining "questionnaire which will result in the generation of a letter from our office either exempting the activity from the need to obtain a reclamation permit or requiring that a reclamation permit be obtained to conduct the mining. The questionnaire is attached to this report and should be completed and returned io our office by May b, 2005 io avoid the issuance of a possible violation letter that would automatically require an appearance before the Mined Land Reclamation Board. If there are any questions, please contact Tony Waldron at (303) 866-4926. I & E Contact Address NAME: Rav Moltrer OPERATOR: Purgatoire Valley Construction. Inc STREET: 1 17 Pine Street CITY/STATE/ZIP: Trinirinri C(7 RlnR9 cc: r CE I' B L I' FS t HW I' HMWMD (CH) t SE I' WOCD (CH) I' OTHER