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(Page 2) MINE ID # OR PROSPECTING ID # M-1980-183 INSPECTION DATE 11/20/2006 INSPECTOR'S INITIALS DEG This inspection of Permit Number M-1980-183 (Pit 29) was conducted by Deb E. Gbnima of the DRMS as a result of a citizen complaint. Chuck Persig of Brannan Sand and Gravel was present during this inspection. The pit is located between 132"' and Nome Streets in Brighton, CO, and currently consists of approximately 176.24 acres. This inspection included visits to Pit 29 (M-1980-183), the Worthing Pit (M-1977-526) - (separate inspection report enclosed), and the complainant's home. This inspection resulted from a citizen complaint received by the Division on October 23, 2006 from the adjacent landowners, Bud and Grace Scott. Letters originally addressed to the Office of the State Engineer were also forwarded to the Division by the Scotts. Concerns of the landowners included loss of surface water in nearby First Creek and stress to the grass and trees on their property possibly due to the reduced access to ground water flow. Amine entrance sign designating Brannan Sand and Gravel as actively mining this site is necessary per Rule 3.1.12(2) (see Problem No. 1 and the corresponding corrective action noted on page 4 of this report). The secondary containment area for fuel storage in the active pit area is inadequate (see photo 2). It appeared that fuel and/or oil were being stored at the time of this inspection (see Problem No.2 on pg. 4). All petroleum and/or hazardous material storage tanks on site for any period of time shall have secondary containment. The Operator must supply photo documentation that all hazardous material containers are stored in a proper secondary containment structure or have been removed from the site on or before February 1, 2007. A lined berm must be constructed around non-double-walled tanks to remain on site. The dimensions of this berm must be capable of containing all contents of the tank (when full) plus 10% of the tank's capacity. The liner shall cover the entire basin as a barrier to infiltration. In addition to the aforementioned problems, this inspection of Pit 29, the Worthing Pit, and the landowner's property also confirmed that there are damaging off-site impacts to the adjacent landowner's property. The grass and trees on the neighbor's property showed signs of stress (see photo 4). These impacts appear to have been caused by changes in the surrounding historic hydrologic balance, including the reduction of surface and ground water, possibly precipitated by the installation of the two-celled slurry wall surrounding Brannan Sand and Gravel's Pit 29 operation. The slurry wall surrounding this operation does not include a perimeter drain structure to facilitate drainage from mounding that maybe occurring at the upland extent of the operation. Based on the pumping information from the adjacent Frei operation (Worthing Pit), the Frei operation is pumping less water. This indicates a lower level of hydrologic recharge. However, it is the Division's belief that off-site impacts occurring on the Scotts property are the result of a combination of factors. It is believed that the immediate drawdown occurring on the Scotts property may be the result of the dewatering activities at the Frei operation that surrounds the Scotts property on 3 sides (north, south, and west). However, the longer-term impacts to the hydrologic balance of the area may be due to interference with the recharge potential, which may be caused by the Brannan operation's (Pit 29) slurry wall. Rule 3.1.6 (1) states that "disturbances to the prevailing hydrologic balance of the affected land and of the surrounding area and to the quantity or quality of water in surface and groundwater systems both during and after the mining operation and during reclamation shall be minimized." Therefore, Brannan Sand and Gravel must provide data to the Division demonstrating that this operation is not responsible for adversely affecting the hydrologic balance on the adjacent landowner's property. This may be done by a providing the Division with a series of ground water monitoring data from the piezometers on site (see Problem No. 3 on pg. 4) and conclusive evidence that this operation has not destabilized the surrounding ground water level and the hydrologic balance. While the longer term effects of the Brannan Sand and Gravel operation on the adjacent landowner are being investigated, a representative from the W orthing Pit (M-1977-526) has committed to supplying the Scotts with access to water for their trees. There are two options for Frei to provide the Scotts with a readily available water source. This may be done by running a pipeline from one of the pumps at the Worthing Pit and allowing the Scotts to water the portions of their property they deem to be in need, or by providing access to water from a water truck Frei is using on their active operation. It is left up to the discretion of Frei operation management to determine which option to utilize. This commitment is intended to be a short-term solution to reduce further negative impacts to the vegetation on the Scott's property, and compensate for the water depletions occurring. The ultimate solution required must include the equalization and maintenance of the water table such that damage to the adjacent property is limited.