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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1991-146 <br />INSPECTION DATE 5/9/05 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of DMG's routine monitoring of 110c in-stream operations. The ZMK <br />Gravel Pit is located approximately 5 miles north of Ouray, along the west bank of the Uncompahgre <br />River. The permit is approved for 8.72 acres affected area, for the extraction and processing of alluvial <br />materials. DMG holds $3,750 financial warranty. Permit status is active. <br />Spring runoff had commenced, but peak flow had not yet occurred. Mining identification sign and permit <br />boundary markers were posted. Mining and reclamation activities appeared to have been confined to <br />permit areas. The excavation and processing areas are separated from the main channel by a historic <br />flood protection levee. Permit documents indicate that the levee was constructed by Ouray County <br />during the 1950's to protect CR 32 and adjoining property from flooding of the Uncompahgre River. The <br />operation is approved to breach a portion of the levee and therebydivert portions ofthe riverflowthrough <br />the pit during high water. Flow velocity through the pit area is reduced to encourage deposition of the <br />excess bedload and to control erosion. River flow is returned to the main channel through the <br />downstream portions of the permit area. After the high water season the operator restores the levee, <br />returning all flow to the main channel. <br />During the spring 2003 runoff approximately 600 feet of the levee, located adjacent to and upstream of <br />the pit area, had been eroded by peak flows. DMG determined that the available evidence did not prove <br />that the erosion had resulted from mining and reclamation activities conducted by ZMK and therefore, did <br />not pursue enforcement action. The operator restored all portions of the eroded levee within the permit <br />area and immediately upstream of the permit area. Maintenance of portions of the levee outside of the <br />permit area is not addressed in the permit and is not a jurisdictional issue for DMG. The river was not <br />allowed to enter the pit area during the 2004 runoff season. During the time of this inspection, DMG <br />observed that all portions of the repaired levee were intact, no flow had entered the pit area. <br />No problems or possible violations were observed. <br />Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 <br />Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247-5469. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Richard Zannett <br />ZMK Construction. Inc. <br />P.O. Box 1817 <br />Ouray. CO 81427 <br />cc: Harry Posey, DMG <br />X COE, Sue Nall <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD(CH) <br />^ SE <br />^ WOCD (CH) <br />X R. Larson, Monadnock Mineral Services <br />