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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1984-043 <br />INSPECTION DATE 9/29/04 INSPECTOR'S INITIALS ESC <br />088&RYATIONS <br />This was an inspection of the Jesa Lee site conducted by Erica Crosby and Carl Mount of the <br />Colorado Division of Minerals and Geology. No operator was present during the inspection. <br />The site is located 3 miles southeast of Buena Vista in Chaffee County, Colorado. <br />The Jesse Lee pit is a 110 surface placer operation, permitted for 9 acres. The permit was <br />issued on July 25, 1984. The permit was transferred from Pridemore Construction to Kerr & <br />Son Trucking on August 27, 1999. The Division holds a reclamation bond in the amount of <br />$16,000.00. The approved poatmining land use is rangeland. <br />The Division was unable to locate a mine identification sign or permit boundary markers. <br />Rule 3.1.12 requires that at the entrance of the mine aiY.e, the operator shall post a sign <br />with the name of the operation, a statement that a reclamation permit for the operation has <br />been issued by the Mined Land Reclamation Board and the permit number. In addition, <br />boundaries of the affected area must be marked to be clearly visible and adequate to <br />delineate the boundary. See page 3 for corrective action due dates. <br />The mine site is located immediately west of the Arkansas River. The pit floor is <br />approximately 15-20 feet above the river. The north end of the permit area contains cut <br />slopes along the north and west permit boundaries. The excavated material is screened and <br />washed. The larger material is separated and stockpiled in the north pit. <br />Two groundwater ponds are located in the southern pit arse. Water level in the ponds are <br />approximately 3-4 feet below the ground surface. According to the permit file, the operator <br />plane to leave the ponds for recreational use. However, correspondence from the Office of <br />the State fingineer (OSE) dated October 26, 1998 and December 23, 1998 indicates that that the <br />operator is not in compliance with state water laws. In particular, the operator has not <br />obtained a Temporary Substitute Water Supply Plan or an Augmentation Plan from the OSE. The <br />nivieion spoke with the Heidi Frey of the OSE on October 25, 2004. According to Me. Frey, an <br />Augmentation Plan has not been approved by the OSE. Attached to this xeport is <br />__ correspondence from 1998 related to this issue. The Division currents holds a financial <br />warranty to backfill the pits 2 feet above the groundwater table. <br />I & s Contaet Addreas <br /> ^ CE <br />NAME Donald R. Kerr ^ BL <br />OPERATOR Kerr ~ Son Trucking ^ FS <br />STREET P.O. Box 1496 ^ HW <br />CITX/STATE/ZIP Buena Vista, CO 81211 ^ HMWhID (CH) <br /> SE <br /> ^ WQCD (CH) <br />Co: Carl Mount; DMG (via a-mail) <br />