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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1977-057 <br />INSPECTION DATE 09/20/2006 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS DEG <br />This routine monitoring inspection of Permit Number M-1977-057 (Fedinec Pit) was conducted by Deb E. Gbnima of the <br />DRMS. Shane Ridnour, a representative from Pioneer Sand Company, Inc., was present during this inspection. The pit is <br />located southeast of Craig, CO by private access off of Highway 304, and currently consists of approximately 5 acres where <br />approximately 5 acres have been disturbed. <br />The mine entrance sign is in place. However, the sign posted refers to the site name as Breeze Mountain #1, and should read <br />"Fedinec Pit" as is the name on record per Rule 3.1.12(1)(c) (see photo 1). In addition, this site also lacked clearly <br />distinguishable permit boundary markers. Therefore, per Rule 3.1.12(2) the operator must clearly mark the boundaries of the <br />affected area with monuments or other markers that are clearly visible and adequate to delineate such boundaries on or before <br />December 1, 2006 (see Problem No. 1 and the corresponding corrective action noted on page 3 of this report). <br />This site was not active at the time of this inspection, and did not appear to have been utilized in several years. Mining appears <br />to have been performed in a graded highwall/bench configuration. There were no clearly identifiable material stockpiles on the <br />site. Topsoil has been stockpiled along the lower bench. The majority of the site was well-vegetated (probably naturally rather <br />than seeded) with mainly a mature stand of Indian rice grass. As mining operations are not yet complete at this site, the erosion <br />feature located at the west-central portion of the upper bench is an item of note for future reference (see photo 3). However, <br />due to the configuration of the operation, this erosion feature does not affect the surrounding land offsite, and all sedimentation <br />and runoff along with any current potential for off site damage from this feature is contained on site. <br />All activities and completed work at the time of inspection appeared to follow the guidelines and regulations set forth by the <br />state and the mining and reclamation plans far the pit, and no other problems are noted for this site. W ith the exception of an <br />onsite erosion feature running south from the upper bench, the site is stable. No disturbance was observed outside of the <br />approved permit boundaries. For future reference, this site is correctly positioned in the DRMS online GIS. <br />Responses to this inspection report should be directed to Deb E. Gbnima at the Division of Reclamation, Mining and Safety, <br />Denver Office, 1313 Sherman Street, Room 215, Denver, Colorado 80203, phone number 303-866-4179. <br />I & E Contact Address cc: ^ CE <br />NAME Mr. Joe Kraia ^ BL <br />OPERATOR Pioneer Sand Company. Inc. ^ FS <br />STREET P.O. Box 7650 ^ Hyy <br />CITY/STATE/ZIP Colorado Sorinas, CO 80933 ^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />cc: Mr. Gary Schnurr, Pioneer Sand Company, Inc., 3701 Hwy 394, Craig, CO 81625 <br />Mr. Shane Ridnour, Pioneer Sand Company, Inc., 3701 Hwy 394, Craig, CO 81625 <br />Carl Mount, DRMS via a-mail <br />