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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2004-078 <br />INSPECTION DATE 03/04/05 INSPECTOR'S INITIALS ESC <br />OBSERVATIONS <br />This was a pre-operation inspection of the Lupton Lakes Resource site, File No. M-2004-078, <br />conducted by Erica Crosby and Tom Schreiner of the Colorado Division of Minerals & Geology. <br />Russ Otterstein and Steve Davis of SW TKO Joint Venture, LLC and Danna Ortiz, Karen Flanders <br />and Brad Hagen of Civil Resources, LLC were present during the inspection, <br />SW TKO Joint Venture, LLC filed a new 112 Construction Materials Application with the <br />Division on January 16, 2005. The Division's recommendation due date is set for April 19, <br />2005. Written objections have been filed by the City of Fort Lupton, the Colorado Department <br />of Transportation and Georgia Landrus. Therefore, this matter will be scheduled for a <br />hearing before the Mined Land Reclamation Board. <br />The mine site is located approximately 1 mile south of the City of Fort Lupton, between <br />Highway 85 and Weld County Road 27 in Weld County, Colorado. The applicant proposes a 331- <br />permit area that encompasses the Wiant, Gurule, Villano, Sasaki, Adams, Watada and Yokooji <br />properties. Most of these properties are currently under agricultural production. The <br />proposed postmining land use is a water storage reservoir. <br />Mining will be conducted in 17 phases ranging in size from 11.3 acres on the north end to <br />25.5 acres on the south end. Mining will progress from north to south. The sand and gravel <br />is an alluvial deposit that ranges in thickness from approximately 30 feet to 50 feet in <br />depth. The pit will be dry mined and dewatering trenches will be constructed. Settling <br />ponds located in the processing area will be used to wash the aggregate. Topsoil will be <br />salvaged and segregated from other soil. The reclamation plan proposes to create two water <br />storage reservoirs built of a clay liner. The clay material will be obtained from the bottom <br />of the pit floor and constructed in lifts to the finished grade of 3.Sh:ly. Topsoil will be <br />place to a depth of 12 inches above the surrounding finished grade and revegetated. <br />During the inspection, the Division was informed that the silt pond west of area 2 would no <br />longer be a component of the proposed mining and reclamation plan. The applicant stated that <br />this area would be removed from ,the affected land boundaries. The Division reviewed the site <br />for drainage control for processing water and dewatering, Additional detail needs to be <br />provided regarding the routing of water to facilitate mining. In addition, the application <br />must further describe the outlet structures used to discharge water off site. <br />A number of permanent man made structures surround the property including buildings, utility <br />lines, gas wells, gas lines, ditches and roads. The applicant's stability analysis is <br />currently under review by the Division to determine if offset distances from these structures <br />are adequate. <br />Hydrologic impacts were discussed and reviewed during the inspection. The applicant has <br />installed lI piezometers around the permit area. Monitoring 9 of the wells began in June of <br />2004 (under permit M-2003-012), and the applicant intends to have 13 months of baseline <br />before mining begins. The applicant did not locate any water wells in the vicinity of the <br />property on any of the exhibits submitted with the application. The applicant must depict <br />all water wells (domestic and irrigation) and demonstrate how the operator will minimize <br />impacts to their water rights. In addition, the applicant proposes mitigation measures in <br />the form of recharge ponds and injection wells. Such structures will need to be incorporated <br />into the permit area. The hydrologic model prepared by Civil Resources, LLC. is currently <br />under review by the Division and comments will be handled under separate cover. <br />All other adequacy issues have been noted in the Division's adequacy letter of March 8, 2005. <br />