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jPage 2) MINE ID # OR PROSPECTING ID #: ~+-~nnz_nix INSPECTION DATE: (L(~3/(13 INSPECTOR SINITIALS: -KAl? OBSERVATIONS 1. This inspection was in response to a permit application for a new 1 12c permit. Present at the first portion of the inspection were Kate Pickford, DMG, and Tug Martin, Banks and Gesso, LLC. Present at the second portion of the inspection were Kate Pickford, DMG, and Leonard Vargas, landowner to the west of the proposed site. Weather at the time of the inspection was clear, calm, and about 70 degrees. 2. The proposed affected area of the site is currently agricultural with a single residence and out buildings. In addition, the site contains irrigations ditches, fences, gas wells, utility poles and lines, and access roads. The proposed operation will use the house as an office until that portion of the site is to be mined, at which time the buildings will be removed. 3. Located to the west of the proposed affected area is a wetland. The operation proposes to install a slurry wall prior to dewatering activities. Groundwater flow at the site is reported to be to the north- northeast. This would orient the wetlands upgradient of the slurry wall. 4. Located to the north of the proposed site is a wetlands nursery. Based upon the reported direction of groundwater flow, the nursery is located downgradient of the proposed slurry wall. A groundwater study has been conducted to predict the potential impact of the slurry wall on the nursery site. At the time of the inspection, Mr. Martin indicated that a mitigation plan for groundwater impacts had been written and was to be presented to the nursery owners. 5. Mr. Martin indicated that once dewatering of the site begins, the water would either be discharged through the existing Fulton irrigation ditch to the South Platte river, or across the adjacent Stahl property, immediately east of the site, and into the South Platte. 6. Mr. Martin indicated that the U.S. Fish and Wildlife Service (USFW) has been contact about the proposed operation. The USFW requested a survey for Preble's Meadow Jumping Mouse at the site. Mr. Martin stated that a consultant would be performing the survey, but that the consulting firm is backlogged and it would be a month or two before the survey is conducted. The delay in clearance of the proposed operation through USFW may require a stipulation upon approval of the permit application 7. At the second portion of the inspection, Mr. Vargas conveyed his concern over the potential impacts to groundwater at his property, immediately to the west of the site. Mr. Vargas has two groundwater fed ponds on the property and awell-established stand of native grasses that has grown on the site over the last five years, since grazing of cattle has ceased on the property. Mr. Vargas stated that a large amount of wildlife uses the property and his concern is that if the operation impacts groundwater at his property, the habitat and ponds may be affected. The model submitted by Banks and Gesso during the permitting process indicates that Mr. Varga's property is located upgradient of the proposed slurry wall and if groundwater impacts occur, they are likely to be in the form of a mounding rather than a shadow effect. 8. Although at the time of this inspection there are some unresolved issues regarding adequacy review items, this inspection did not reveal any conditions that would prohibit approval of the permit application.