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(Page 21 <br />MINE ID # OR PROSPECTING ID # M-1983-158 <br />INSPECTION DATE 10/17/00 <br />INSPECTOR'S INITIALS WHE <br />This inspection occurred as part of DMG's routine monitoring of permitted operations. Dave <br />Andrews and Rick Ward represented the operator and accompanied the DMG inspector throughout <br />the inspection. The Cadgene F'it is approved for 9.0 acres affected area. DMG holds $4,000 <br />financial warranty. Operations were active during the time of this inspection. <br />Records The map, submitted with the January 30, 2000 annual report, map dated January 1, <br />2000, erroneously indicates a permit area of 10.34 acres. Additionally, the configuration of the <br />permit boundary delineated on the January 1, 2000 map does not appear to agree with the <br />boundaries approved in the permit. Should the operator desire to modify the configuration of the <br />permit boundary, such modification must be appropriately submitted through the technical revision <br />or amendment process. DMG records do not indicate that the operator has submitted such a <br />revision to the application. Plea:>e review Rules 1.1(6), 1.11491, 1.9 and 1.10. Pursuant to C.R.S. <br />34-32.5-124(7-, an operator who affects land beyond the approved permit boundary may be found <br />in violation of their permit conditions and the Act and Rules and assessed a civil penalty in the <br />range of 5100 to $1,000 for each day during which such violation occurs. Pursuant to C.R.S. 34- <br />32.5-12312-, an operator who affects more than 2 acres of land beyond the approved permit <br />boundary may be found in violation for conducting a mining operation without a reclamation permit <br />and assessed a civil penalty in the range of $1,000 to $5,000 for each day the land has been <br />affected, not to exceed 365 days. <br />Pit Area Operations appeared to have affected the maximum 9.0 acres allowed. Evidence of <br />contemporaneous reclamation was not observed. Fuel storage tanks were surrounded by spill <br />containment berms. Spill containment structures were lined with an impermeable liner. Affected <br />lands appeared stable, evidence of slumping, slope movement or excessive erosion was not <br />observed. <br />NOTICE TO INCREASE THE FINANCIAL WARRANTY DMG has reviewed the cost of reclamation <br />for the full 9.0 acres of affected land and has determined that the existing $4,000 financial <br />warranty is insufficient to ensure reclamation. DMG current reclamation cost estimation totals <br />$16,407. Please find attached, 8 pages of summary, worksheets and data sheets utilized by DMG <br />to estimate the cost of reclamation. <br />Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 Camino del Rio, Room <br />125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247-5469. <br />I & E Contact Address <br />NAME M.J. Cadgene <br />OPERATOR M.J. Cadgene dba Redvale Sand & Gravel <br />STREET P.O. Box 10 <br />CITY/STATE2IP Redvale. CO 81413 <br />cc: Tom Gillis, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CHI <br />^ OTHER <br />