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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1992-066 <br />INSPECTION DATE 9/23/02 <br />INSPECTOR'S INITIALS ESC <br />This was an inspection of the Hogue/River Pit conducted by Erica Crosby of the Division of <br />Minerals and Geology. Rick Bouchard of Duckels Construction, Inc. was present during the <br />inspection. <br />A 112c Mining and Reclamation Permit was issued to Duckels Construction, Inc. on April 12, <br />1993 for a total permit area of 51 acres. The Division holds a financial warranty in the <br />amount of $68,300.00. <br />The Hogue/River Pit is located 6 miles west of Steamboat in Routt County, Colorado. The <br />site lies north of the Yampa River. The operator is required to maintain a 100' buffer <br />distance from the pit to the Yampa River. It appears that this buffer distance has been <br />established. Mining was actively taking place during the inspection on the west end of <br />the pit. Material was being loaded and transported to the crushing and screening facility <br />on the bottom of the pit floor. Amine identification sign and permit boundary markers <br />were noted. <br />The Hogue/River Pit is a dry mining operation that pumps groundwater into a series of <br />channels and ponds within the permit area before it is released back to the Yampa River. <br />In addition, the collected water is used as wash water to facilitate the mining operation. <br />A well permit issued by the Office of the State Engineer was submitted by the operator. <br />Reclamation of pit slopes was taking place during the inspection. A dozer was grading the <br />south perimeter of the pit to achieve the final pit slopes. <br />Duckels Construction is interested in mining additional land to the north, Such activity <br />would require an amendment to the permit as noted in the Division's letter of August 2, <br />2001 (attached for reference). The critical items that need to be addressed for the <br />amendment area include mining in proximity to permanent man-made structures, and <br />relocation of the topsoil pile/visual berm adjacent to the railroad. <br />I & E Contact Addresa <br /> ^ CE <br />NAME Mr. Randy Jackson ^ BL <br />OPERATOR Duckels Construction, Inc. ^ FS <br />STREET 41230 RCR 129 ^ HW <br />CITY/STATE/ZIP Steamboat Springs, CO 80487 ^ HMWMD (CH) <br /> ^ SE <br /> ^ WQCD (CH) <br />Cc: Carl Mount; DMG (via electronic transmission) <br />