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(Page 2) MINE ID # OR PROSPECTING ID # M-83-084 INSPECTION DATE June 11. 1997 INSPECTOR'S INITIALS TAS OBSERVATIONS 1. A site inspection was made of the Snowstorm Placer located 3 miles north of Fairplay immediately east of Colorado Highway #9. The inspection was made as part of the Division's routine inspection program and in response to a recent request for a succession of operator. It should be noted that the permit was transfered on June 19, 1997 from Zigan Sand and Gravel, Inc. to Snowstorm Sand and Gravel, LLC. Representatives of both companies were present during the inspection. 2. The Snowstorm Placer is permitted for 260 acres of disturbance. The maximimum allowable pit disturbance at any one time is 8 acres and the maximum depth of excavation is 100 feet. There are also 29 acres of moderate disturbance allowed. The total amount of financial warranty held by the Division for the 37 acres of affected land is $118,534. The designated post-mining land use is commercial/industrial. 3. There was an entrance sign posted along Highway 9, as required by Rule 3.1.12. However, neither the permit boundary nor affected land boundary was delineated. The Division recommends that the 260 acre permit boundary be identified on site as to ensure that no mining occurs outside the permit boundary. However, the matter of the affected land boundary is considered to be a problem that will require corrective actions. The operator will need to conduct a survey of all affected land and then submit the survey results along with an accompanying map to the Division. This information is necessary in order to verify compliance with the mining plan. See page 3 for details. 4. The Division will reevaluate the reclamation cost for the Snowstorm Placer during July and August of 1997. Current and accurate maps will be necessary in order to accomplish this task. The mining and reclamation plan maps submitted in the February, 1996 amendment package are the most current maps available. Neither these mining and reclamation plan maps nor the latest annual report map submitted August, 1991 adequately delineate the affected land boundaries. There is also a significant area of pre-law disturbance within the 260 acre permit area which apparently has not been redisturbed since the permit was fissured in 1983. This particular area should also be identified on a current map. Therefore, in conformance with Section 116(3)(a) of the Colorado Land Reclamation Act for the Extraction of Construction Materials, the Division requests that the operator submit adequate mining and reclamation plan maps with the desired information by July 31, 1997. This issue is considered to be a problem that requires corrective actions. Please see page 3. 5. Specific information the Division will be gathering during July and August, 1997 in order to calculate a current reclamation cost is listed below. The operator is encouraged to provide volumetric estimates where possible as the Division will take a conservative approach when measuring material volumes at the site. surface area and depth of pit volume of overburden needed to backfill pit volume of remaining overburden to be regraded to final conCOUrs volume of stockpiled topsoil volume of material needed to fill wet tailings pond volume of material needed to fill dry tailings pond demolition costs I & E Contact Address NAME Bernhard Free OPERATOR 7420 East Ouincv Ave., #606 STREET Denver, CO 80237 CITY/STATE/ZIP cc: Jim Stevens, DMG CERTIFIED MAIL NO. P ~a(p ~I 3 j 34q ~ RETURN RECEIPT REQUESTED ~ CE ~ BL ~ FS ~ HW ~ HMWNID (CH) OTHER