INSPEC22992

• Permit No: M1984043
• IBM Index Class Name: Inspection
• Doc Date: 5/31/2006
• Doc Name: Inspection Report
• From: DMG
• To: Pelino Inc.
• Inspection Date: 5/19/2006
• Media Type: D
• Archive: No

(Page 3)
MINE ID # OR PROSPECTING ID # M-1984-043
INSPECTION DATE 5/19/06
INSPECTOR'S INITIALS ESC
The possible violation and correction actions are noted as follows;
The operator failed to protect areas outside of the affected land from slides or damage
during the mining and reclamation operations in accordance with 34-32.5-116 (4)(I)of the
Colorado Land Reclamation Act for the Extraction of Construction Materials, OR the operator
failed to first obtain a reclamation permit prior to engaging in a new operation in
accordance with 34-32.5-109(1) of the same Act. Notice of the said violations will be sent
under separate cover.
The operator will need to submit a 112-conversion application (112 permits are required for
sites greater than 9.9 acres). The application should update the Jesse Lee Pit so the total
affected area and all present and future disturbances that have occurred and/or will occur as
a result of this operation will be included in the permit area. A complete 112 Conversion
Application must be submitted by July 11, 2006 and approved by October 30, 2006 (or November
30, 2006 if comments are received). See page 4 for additional detail.
Surface and Groundwater:
Two groundwater ponds are located in the southern pit area. According to the permit file,
the operator plane to leave the ponds for recreational use. As noted in the Division's
inspection report of 9/29/04, correspondence from the Office of the State Engineer (OSE)
dated October 26, 1998 and December 23, 1998 indicates that that the operator is not in
compliance with state water laws. In particular, the operator has not obtained a Temporary
Substitute Water Supply Plan or an Augmentation Plan from the OSE. The Division spoke with
the Heidi Frey of the OSE on October 25, 2004. According to Ms. Frey, an Augmentation Plan
has not been approved by the OSE. Clarence Champion who represents the landowner, states that
they have recently been working with the OSE to address the exposure of groundwater on site.
Mr. Champion stated that they would like to convert the groundwater ponds back into the
historic wetlands that existed prior to mining. Issues regarding the augmentation related to
the conversion will need to be handled through the OSE. Any change to the reclamation plan
to convert the ponds back into a wetland area will also need to be changed in the reclamation
plan in the form of a revision to the permit. In addition, this area cannot be released from
the permit until the water issues are resolved by the OSE. The Division does hold a
financial warranty to backfill the pits 2 feet above the groundwater table.
Construction equipment storage:
A retail sales area has been set ug immediately west of the permit site. Material is
imported from other sites to sell. The material consists of rocks and other aggregate
material. The operator states that this area is not part of the mining area, but instead a
retail sales area. The area was measured using the GPS unit, and is approximately 0.88 acres
in size. Because the material is not from the Jesse Lee pit, and rather a staging area for
other construction sites, this area does not need to be included in the permit area.
xowever, the operator should consult with Chaffee county to see what County permits may be
required.
Traffic Counts:
The Di~v~is o has no jurisdiction over traffic counts or traffic related issues. This is
typically handled by the local county.
Reclamation:
Accor~ to the file, the site is to be reclaimed as rangeland habitat. The southern half
of the site has been reclaimed to groundwater exposed ponds, which is consistent with the
approved reclamation plan. If the operator intends on changing this plan to wetlands, then a
revision to the permit will be required. The remainder of the site is currently being mined,
and is not subject to the reclamation requirements until mining is complete. The area east
of the Arkansas River has not been mined, and reclamation is not necessary. Therefore, the
Division finds no apparent problems with reclamation at the site.
Storm 9Pater Management:
Storm water management permits are issued by the Colorado Department of Public Health and the
Environment (CDPHE). The operator should contact the CDPHE to determine if a storm water
permit for the site is necessary. In regard to the DMG permit, the operator is required to