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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1992-049 <br />INSPECTION DATE 4/30/03 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS WHE <br />This inspection occurred as part of DMG's review of an application for transfer of the DMG permit from <br />Peck, Inc., to Vista Verde Village, LLC. The Peck Pit is approved for 8 acres affected area. DMG holds <br />$6,000 financial warranty. Approved activities are limited to extraction of alluvial materials from gravel <br />bars within the Uncompahgre River channel and stockpiling of excavated materials. <br />Prior to the inspection, DMG contacted Charles Ponchak to schedule the inspection. However, Mr. <br />Ponchak could not participate in the inspection due to a previous commitment. Mr. Ponchak indicated <br />that mining activities had not commenced and that the landowner, Keith Zimmerman, may also be <br />unavailable. On 5/22/03, DMG contacted Mr. Zimmerman, who verified that mining activities had not <br />commenced. Mr. Zimmerman's residence is located at the permit area. <br />Access road was well maintained. Evidence of heavy truck traffic was not observed. Gate across the <br />entrance road, located at Mr. Zimmerman's property line, was locked. DMG inspectors did not pass the <br />access gate. Several minor stockpiles of earthen material and large boulders were observed near the <br />entrance gate. The stockpiled material had not been recently placed and appeared similar as previously <br />observed during DMG's 10/22/02 inspection. <br />Financial Warranty: Pursuant to Rule 4.2, DMG has calculated the current cost of reclamation for the <br />first year of active operations, totaling $3,015. Previous calculations, totaling $6,000, assumed the total <br />8 acres permit area needing reclamation. However, mining activities have not commenced. Therefore, <br />DMG has calculated the current cost based upon only 2 acres affected area needing reclamation. <br />Staff Recommendation for SO-01: DMG recommends approval of SO-01 subsequent to receipt of a <br />properly executed financial warranty not less than $3,000. <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 />Charles Ponchak <br />Peck,lnc. <br />P.O. Box 278 <br />Ourav. CO 81427 <br />cc: Tom Gillis, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />X Keith Zimmerman, Vista Verde Village <br />