INSPEC17837

• Permit No: M1977023
• IBM Index Class Name: Inspection
• Doc Name: MINERALS PROGRAM INSPECTION REPORT
• Inspection Date: 6/6/1997
• Media Type: D
• Archive: No

• (Page 21 •
MINE ID # OR PROSPECTING ID # M-77-023
INSPECTION DATE 06/06/97 INSPECTOR'S INITIALS RCO
OBSERVATIONS
This was a partial inspection performed by the Division as part of its monitoring of 1 1 2 permits with phased operation. The operator
was contacted about the inspection and was present for it.
The required permit ID sign was posted at the entrance to the NE corner of Valco's property. The permit boundary is adequatelt
delineated by roads and fencelines. All permitted operations appear to be within the boundaries and are approved by the orginial
plan and technical revision TR-1.
The five acres in the NE corner of the property, which contain the scales, offices and shop building, and parking area are within the
permit area. The post-mining land use for this five-acre block is commercial/industrial, and specifies that all these structures and
facilities will remain after mining. This area therefore requires no extra bond to cover any reclamation here.
The financial warranty was calculated in 1995, and the total amount is 527,837. Tasks covered by this bond include: pumping
down the ponds to allow the grading of the upper zone of the pond banks to the required maximum slope of 3:1; removal of the
small metal building in Area 2; ripping the compacted areas and grading other disturbed areas; spreading topsoil on the areas to
revegetate, which are mainly the pond banks; and the seeding and other revegetation tasks.
Not much has changed on the site since the bond was recalculated in 1 995 (which was performed as a result to changes proposed
in the approved technical revision). The operator removed a significant amount of structures, rubble and debris, and was able to
exclude the reclamation of the NE area, which was important to reducing the Division's initial estimated bond increase. It appears
from the detailed breakdown in the file that the required task costs are still in line with the current amount of disturbance. It is
doubtful that another bond recalculation will be necessary for several years. If it is felt to be necessary, however, new figures will
be sent to the operator for review. The operator is reminded that all increased disturbance and/or reclamation performed should
be fully reported in the annual report, because it may influence the bond amount.
Especially important tasks in the overall reclamation is the pumping down of the ponds and bank reshaping to 3:1 (most were
observed to be about 2:1, above water) and the topsoil spreading and revegetation. The recent technical revision addressed the
fate of the "interior" pond divisions. It was not clear during the inspection whether they were to remain or be removed. It appears
that most will be removed, though not completely, and peninsulas were to be in the final configuration. The operator should consult
the final approved version of this revision to determine the lay out. Any portions of the area in which final reclamation could be
commenced should be examined, since this will tend to reduce the reclamation liability.
The metal building, adjoining concrete pad and stockpiled metal debris were still present in Phase 2. As mining progresses in coming
years, these will be removed, and will no longer be a reclamation liability. Also observed at the entrance to the metal building was
an open container of about 25 gallons of waste oil. It did not appear to be in immediate danger of spilling or leaking, but the
potential is there for an uncontained spill if it were struck by equipment. There was no secondary containment under or around it.
The operator should remove it. If such materials are to stored anywhere on the permit, adequate containment must be provided.
This is not presently regarded as a problem, but this office would appreciate a follow up from the operator as to the removal of this
vessel. The operator stated during the inspection that no fuels are stored onsite, but that all equipment was fueled at a bulk plant
ofisite. Does this offsite service arrangement extend to lubricants or hydraulic fluids also? The file indicates that there was an
underground fuel tank on the permit area. Please verify whether this is the same tank that was observed during this inspection, as
having been dug up and placed on the surface near the metal building. Please also comment on the plans for removal or disposal
of this tank from the permit area.
Mining is planned to move into the SW part of Phase 2 soon. The operator is reminded to review the approved pond shapes in the
plan, and that 3:1 slopes on all newly created pond banks is assumed as part of the total reclamation costs )eliminating the need
to go back and pump down the pond and reshapel~ There is still no activity south of Tomichi Creek in Area 3.
There were no other items observed or discussed. There were no problems noted during this inspection. If there are questions about
this report, please contact this inspector at the following address or phone:
Division of Minerals and Geology
484 Turner Dr., Bldg. F-101
Durango CO 81301
phone: [phone].