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(Page 2) NINE ID ~ OR PROSPECTING ID k M-93-059 INSPECTION DATE 1012/98 INSPECTOR'S INITIALS AJW OBSERVATIONS This was a pre-operational inspection conducted by Tony Waldron of DMG along with Bruce Owen of Holly Rock, LLC. The site is located approximately 2 miles west of Holly, Colorado and just south of U.S. Hwy 50 and the ATSF RR tracks and north of the Arkansas River. The mine is situated on the historic floodplain of the Arkansas River and the source of the gravel is the river alluvium. The current land use is high intensity farming with crops such as Dnions, cantalope, alfalfa, corn, etc. being raised. This inspection was conducted in conjunction with an amendment that was submitted on July 31, 1998 and called complete for technical review on August 6, 1998. The subject of the amendment is to revise the mining and reclamation plan, change the post-mining landuse, slightly revise the permit boundary around the prep plant and facilities area, and revise the bond calculations. Since the current permit was issued in 1993, it has become apparent that the original reclamtion plan could not be implemented as originally proposed with the most glaring discrepancy being the surface area of the proposed lake(s) that will be left when mining is completed. In addition, the landowners have decided to revise the post-mining land use from tillable cropland to general agriculture. The mining method at this site is by the use of a floating suction dredge which removes in- situ material to a depth of BO-100 feet. This material is then piped to a screen where all material 1/4 inch or larger is removed and the sand is returned to the excavation and backfilled behind the dredge. A fairly sizeable lake is necessary to operate the dredge and as a result, a large overburden stockpile had to be constructed to initiate the mine. The disposition of this pile has been an area of concern for the Division and this amendment addresses this in more detail. This amendment will add a small amount of previously undisturbed land to the east end of the office/facilities area. This area will be used to stockpile material and construct two new sediment ponds in the southeast corner of this new area. There are two structures that could be impacted by the addition of this area and will need to either include a setback from the affected area or damage agreement for repair in the outside event damage would occur. These structures are U.S. Hwy 50 along the north side of the added acreage and the ATSF RR along the south side of the added acreage. Based on the maps submitted with the application some stockpiles and ponds could be constructed within 200 feet of either one of these structures. There are setbacks already imposed on the rest of the affected area for other existing structures. The operation is currently contained to the Phase I area plus the processing site. The operator has slightly changed tk}e sequence of mining by moving the dredge east as well as south. This has moved the lake closer to the waste sand pile, however, it also causes the dredged material to be transported across and screened over an area that has been partially reclaimed. This action prevents full reclamation of this area to proceed and in effect keeps it open as an affected area since it cannot be fully topsoiled and revegetated. This will be addressed in further detail in the preliminary adequacy letter. Overall, it appears that the changes proposed assist the operator to more efficiently mine observed on the ground that will preclude previously mentioned in this report, there through the adequacy process. by this amendment are relatively small and will and reclaim this site. There were no problems the approval of this amendment, however, as are some concerns that will need to addressed I ~ E Contact Address NAME George Temple OPERATOR Holly Rock, LLC STREET P.O. Box 246 CITY/STATE/22P Wilev, CO 81092 cc: Jim Stevens ^ CE ^ BL ^ FS ^ HW ^ HMWhID (CH) ^ SE ^ WQCD (CH) ^ OTHER