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WHITE -PUBLIC FILE YELLOW - OPERATOR PINK-CORRESPONDENCE FILE (Page 2) MINE ID # OR PROSPECTING ID #: nn-vnn_~ a_ nz_ INSPECTION DATE: _ n~zl/nF OBSERVATIONS INSPECTOR=S INITIALS: _ TAS 1. A site inspection was made in response to a citizen complaint received from Mr. Andrew Chavers on March 10, 2006. Mr. Chavers is an adjacent landowner on the west side of Colorado Highway 85. (please see attached March 10, 2006 correspondence). Present during the inspection was Mr, Dave Jordan of Lafarge. Digital photographs were taken and are attached to this report. The Permittee is SW TKO Joint Venture, LLC . The Operator is SW TKO Joint Venture, LLC by Lafarge North America. Civil Resources, LLC was the permitting agent representing SW TKO Joint Venture, LLC. 2. Prior to the inspection, this inspector met with Mr. Chavers to discuss his concern, Mr. Chavers is concerned that a large volume of mine water from future de-watering operations will be discharged through the large 6'x8' concrete box culvert beneath Colorado Highway 85 and onto his property, now being used as a horse pasture. The permittee has included the irrigation return flow seepage ditches (Porter Seepage Ditch, Olgilvie Seepage Ditch) in the permit area for the Lupton Lakes Project, which appear to run across Mr. Chavers property. The permittee has provided written corcespondence to the Division which alleges the permittee has legal right of entry for the return fbw ditches. The return flow ditches were previously reported to the Division to extend from Colorado Highway 85 to the South Platte River. At the May 11, 2005 Format Public Hearing, the Colorado Mined Land Reclamation Board considered the matter of the operator securing prior approval from the Colorado Highway Department prior to discharge of mine water beneath Highway 85. The seepage ditches are immediately west of Highway 85 and drain westward to the South Platte River. The Board had determined that the matter of prior approval for such discharge to be a matter outside the jurisdiction of the Board and the Construction Materials Act. (See attached copy of Board Order). At that time, there was no knowledge of a potential concern regarding the validity of the applicant's apparent legal right of entry to use the seepage ditches and safely route mine waters from de-watering operations to the South Platte River. This inspector notes that Mr. Chavers was aware of the Regular 112 Application under consideration in 2005, and elected not to file an objection to the application. At the time of inspection, Mr. Chavers reported that he has no knowledge of irrigation return Flows from the east side of Highway 85 being discharged through the large concrete box culvert and westward toward his property. Mr. Chavers expressed a concern that his property (horse pasture) could easily be flooded if mine water is discharged through the box culvert. The approved mine plan specifies a maximum de-watering rate of 45 from the Lupton Lakes excavations. The Flow capacity of the seepage ditches are as follows: 6 cfs-Oggivie Seepage Ditch, and 15 cis-Porter Seepage Ditch. Following the inspection, representatives of Civil Resources, LLC (permitting agent for the applicant} affirmed that irrigation return flows have historically been discharged through the concrete box culvert and westward toward the South Platte River via the Porter Seepage Ditch. At this time, the Division has requested information from Water Commissioner Bob Stahl of the Office of the State Engineer to discern the use and location of the Olgivie and Porter Seepage Ditches. 3. Review of the permit file indicates a de-watering rate of 45 cubic feet per second and that the discharge of recovered groundwater will be Flow by gravity back to the South Platte River via the Porter and Ogilvie seepage ditches (west of Colorado Highway 85). Review of documents provided by the operator indicate that the maximum conveyance capacity of the seepage ditches is 21 cubic feet per second (15 cis-Porter ditch & 6 cfs-Ogilivie ditch). Stipulation 2 of the June 9, 2005 Board Order specifies that prior to discharge of mine water into existing ditches, the applicant will obtain approval from the Division of Minerals and Geology for a ditch stabilization and erosion control plan in the form of a technical revision to the permit. The operator has not yet provided a plan to verify that they can route the recovered groundwater from de-watering operations to the South Platte River via the Porter and Ogilvie seepage ditches in a manner that minimizes the potential for damage to the adjacent property. The Division considers this matter to be a problem that will require corrective actions. Please see Page 4 for Corrective Actions. 4. The inspection revealed that a) there was minor disturbance in the southwest portion (Cell 1) of the permit area, b} there was no exposure of groundwater or de-watering or discharge of mine water occurring, c) Lafarge had completed re- grading of the drainage channel east of Highway 85 and the Porter Seepage ditch, d) there was approximately 1300 linear feet of water conveyance trench approximately 4' wide x 3' deep excavated along the west permit boundary, immediately north of WCR 8. The trench is unspecified in the mine plan, and less than 4' from a fence line that also defines the west permit boundary. The Mine Plan Map specifies a minimum setback distance of 25' from the property line/permit boundary