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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2001-060 <br />INSPECTION DATE 09119/2006 INSPECTOR'S INITIALS DEG <br />OBSERVATIONS <br />This routine monitoring inspection of Permit Number M-2001-060 (Deakins Pit) was conducted by Deb E. G6nima of the <br />DRMS. Steve Baker, a representative from 36 Enterprises, LLC, was present during this inspection. The pit is located 1 mile <br />east of Craig, CO, and currently consists of approximately 23.59 acres where approximately 23 acres have been disturbed. <br />Mine entrance signs and permit boundary markers are in place, there are numerous material and topsoil stockpiles on site. The <br />railroad easement and fenceline constitutes the southern permit boundary and other fencelines constitute all other permit <br />boundaries. This site was active at the time of this inspection, and several stockpiles of various materials were present onsite <br />(see photos 3 and 4). <br />Mr. Baker posed the question of acreage exchange to this inspector. Mr. Baker would like to increase the acreage of the <br />current permitted area by adding some property across 1s` Street from the current operation. It is the Division's <br />recommendation that this acreage increase may be approved through submitting an adequate amendment application for this <br />change in acreage. The 1st Street barrier will not impede this amendment, but an agreement with the town or county maybe <br />necessary in order to comply with necessary easement set-backs. He also expressed interest in releasing the pond at the north <br />portion of the current permit area. This northern pond has been sloped to 4h:1v grade to comply with county regulations (see <br />photo 5). If release of this pond is sought, the Operator will need to submit a complete, formal acreage release request for this <br />portion of the property, at which time an inspection will be performed. As a matter of record, during this inspection it was <br />discovered that a portion of this pond has been breached from offsite flooding that occurred near the northeast corner of the <br />pond. Mr. Baker states that his pond wall was breached as a result of erosion from the vacant lot next door (see photo 6) <br />In addition, the western portion of the pit (Phase II) has been nearly mined out, and reclamation on this portion of the pit may <br />begin as early as next summer (see photos 1 and 2). <br />All activities and completed work at the time of inspection appeared to follow the guidelines and regulations set forth by the <br />state and the mining and reclamation plans for the pit, and no problems are noted for this site. The site is stable and no <br />disturbance was observed outside of the approved permit boundaries. For future reference, this site is correctly positioned in <br />the DRMS online GIS. <br />Responses to this inspection report should be directed to Deb E. G6nima at the Division of Reclamation, Mining and Safety, <br />Denver Office, 1313 Sherman Street, Room 215, Denver, Colorado 80203, phone number 303-866-4179. <br />I & E Contact Address <br />NAME Mr. Steve Baker <br />OPERATOR 36 Enterprises. LLC <br />STREET 1220 E. 15' Street <br />CITY/STATE/ZIP Craig, CO 81626 <br />cc: Carl Mount, DRMS via a-mail <br />cc: ^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />X SE <br />^ WOCD (CH) <br />^ OTHER <br />