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Pa e 2 <br />MINE ID # OR INSPECTOR'S <br />PROSPECTING ID #: M-2006-075 INSPECTION DATE: 11/092006 INITIALS: RMW <br />This inspection was apre-operational inspection conducted in response to a new permit application submitted to <br />the Division of Reclamation, Mining and Safety (Division) on October 25, 2006. Present at the inspection were <br />Richard Wenzel representing the Division and Richard Migchelbrink representing the operator, Granby Realty <br />Holdings, LLC (Granby Realty). <br />The proposed Overlook Mine is located approximately two miles southeast of the Town of Granby, Colorado in the <br />Granby Ranch subdivision, which is owned entirely by Granby Realty Holdings, LLC. and is accessed by Grand <br />County Road (GCR) 894, which, according to the permit application, is owned by Granby Ranch. The proposed <br />mine site consists of a oval shaped hill measuring approximately 2,000 feet long by 1,000 feet wide by <br />approximately 140 feet high. The permit application indicates that the mine will encompass 32.36 acres and that <br />the post-mining land use will be residential. The hill trends northwest-southeast and is bounded by golf course <br />property and wetlands to the northeast, and DeBerard Draw, wetlands, and more golf course property to the <br />southwest. According to Richard Migchelbrink, the wetlands have been created by Granby Ranch under a <br />Nationwide Wetland Permit. He also indicated that the purpose of mining the hill is to remove it down to the level of <br />the golf course and construct condominiums on the site. <br />Upon arrival, it was observed that significant mining activity has already taken place on the site. According to the <br />permit application approximately 13 acres have been disturbed. A public notice sign was posted at the entrance to <br />the mine. An access road to the top of the hill and the pit floor has been constructed along the southwest side of <br />the hill. The southeast half of the hill has been mined to a depth of approximately 35 feet, leaving a highwall at the <br />northwest mine face. The northwest half of the permit area has not been disturbed. Vegetation on this portion of <br />the site consists of native grasses, weeds, and Lodgepole pine trees. At the southeast end of the hill the operator <br />has constructed a golf course clubhouse which consists of a small modular building. Inside the pit, mining <br />equipment observed on site consisted of a track mounted excavator and afront-end loader. Several piles of <br />processed material were also observed on the pit floor. No topsoil has been salvaged for reclamation. Richard <br />Migchelbrink indicated that sufficient topsoil for reclamation is available within the subdivision. It was explained to <br />him that if the topsoil is not stored within the permit boundaries, the Division would not have access to it in the event <br />the Division has to reclaim the site. Therefore, if the Mined Land Reclamation Board (MLRB)finds thatthe activities <br />that have occurred on site to be mining, the Division will require the operator to either import topsoil to the site or <br />post sufficient bond to cover the cost of importing topsoil. This issue is listed as a problem (PB) on page four of this <br />report. <br />Richard Migchelbrink indicated that the site was mined in the past by Dick Linke; however when the current <br />landowner purchased the property, Linke was asked to leave. Research of the Division's permitdatabase indicates <br />that Linke's permit was terminated in 1997. Over this past summer, Granby ranch hired a contractor to process <br />material for use on the roads within the subdivision. Approximately 120,000 tons of material was produced and all <br />but what is remaining in the stockpiles was used within the subdivision for road construction. Richard also indicated <br />that he consulted with Greg Lewicki of Greg Lewicki and Associates, PLLC regarding the need to obtain a <br />reclamation permit from the Division. Mr. Lewicki informed Richard that a reclamation permit would not be <br />necessary since the material being mined and processed would be used on property owned by Granby Ranch. <br />Enforcement and Inspection Contact Address <br />NAME: Mr. Lance Badger <br />OPERATOR: Granby Realty Holdings LLC <br />STREET: 999 Village Road <br />CITY/STATE/ZIP: Granby, Colorado 80446 <br />cc: <br />U.S. Army Corps of Engineers CO Hazardous Materials and Waste Division <br />U.S. Bureau of Land Management CO State Engineers Office <br />U.S. Forest Service OTHER: Paul Gesso, Banks and Gesso, LLC <br />CO Department of Transportation OTHER: <br />