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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1983-158 <br />INSPECTION DATE 8/5/03 <br />INSPECTOR'S INITIALS GRM <br />This inspection was preformed as part of the normal monitoring program established by the Colorado Division of Minerals and <br />Geology. The Cadgene Pit is located Northwest of Redvale, Colorado. The operator, M J Cadgene was present for the <br />inspection. <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. The sign <br />was located at the entrance to the property off the main road. Permit boundary markers were observed at critical comers and <br />appear to match site maps. <br />The mine is close to, if not done with excavating. Several stockpiles of various materials ranging from sand to cobble were <br />observed within the permit boundaries. The various stockpiles all show signs of material removal, however none appeared to <br />be recent. <br />A 500-gallon fuel tank was noted as being in a bermed area with a plastic liner. The observed plastic appeared to be in good <br />order and showed no signs of degradation. No evidence of fuel spills was noted. <br />The road leading into the pit was well maintained. No erosion or sedimentation was noted along the road or elsewhere in the <br />pit. Dried pooling areas indicated all storm water is being contained on site. No evidence of off site run off or any other <br />damage was noted at this time. <br />Stockpiles of soil appear to be erosion free and vegetated with some grasses and volunteer shrubs <br />The inspector noted a prolific infestation of knapweed in this region. Recentdrought conditions have created a condition where <br />many hayfields in the area are fallow due to the lack of irrigation water. Staff must note the infestation within the permit <br />boundaries, but cannot under the current conditions list the issue as a problem for this inspection. The inspector advised the <br />operator to spray the areas at least within the permit boundaries and supply this Office with documentation showing control <br />efforts. The early documentation of weed control efforts will help staff in any release request review as it is highly doubtful that <br />the infestation will ever be eradicated. <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the approved <br />reclamation plan, DMG has updated the reclamation cost estimate (copy enclosed). Clearly, the site is currently under-bonded. <br />Therefore, pursuant to Section 34-32.5-717(4) of the Colorado Land Reclamation Act, adequate financial warranty <br />must be submitted to DMG within 60 days of the mailing date of this report. Please review the enclosed figures as soon <br />as possible and contact our office if any calculation errors are noted. Increases are noted in the rising costs for seed and the <br />inclusion of mobilization for a second seeding task. The estimate is set at 519.600.00 an increase of 53193.00 over the <br />current bond of 516.407.00. <br />No other issues were noted or observed. <br />Responses to this inspection report should be directed to Russ Means at the Division of Minerals and Geology, Grand Junction <br />Field Office, 101 South 3'" Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. <br />I & E Contact Address <br />NAME MJ Cadoene <br />OPERATOR Redvale Sand and Gravel <br />STREET P.O. Box 10 <br />CITY/STATE/ZIP Redvale. CO 81431 <br />cc: <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WQCD (CH) <br />^ OTHER <br />