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• (Page 21 • MINE ID # OR PROSPECTING ID # M-07-038 INSPECTION DATE 4/16/96 INSPECTOR'S INITIALS WHE This complete inspection was conducted by Wally Erickson from the DMG field office in Durango, 1474 Main Avenue, Room 207, Durango, CO 81302-5182,phone 19701247-5062. Don Gosney of Gosney & Sons and Greg Miller of Western Mobile accompanied the DMG inspector through out the inspection. Bayfield Pit 1 is located approximately 2 miles south of Bayfield, on the east side of the Los Pinos River, in portions of the W 1 /2 of the NW 1 /4 and SE 1 /4 of the NW 1 /4 of Section 14U, T34N, R7W, NMPM, La Plata County. The Regular 112 permit was approved by the Board on 5/27187, but the permit was not issued until 2/9/90. The operation was originally approved for 37.3 acres affected area. On 5/3/93, DMG approved Amendment No. 1 (AM-011, addressing removal of the material processing and office complex area from the permit area and adding acreage to the west side of the affected area for Phases 1, 2, 3 and 4. Total affected area approved under AM-01 was 31.3 acres. On 1/21/94, DMG approved AM-02, addressing increase in affected area along the north border for Phases 5, 6 and 7. Total affected area approved under AM-02 was 52.9 acres. On 416/94, DMG approved Surety Reduction No. 1 ISR-011, reducing the amount of financial warranty from 590,152.00 to 544,437.00, by virtue of eliminating the Phase 1 lake area reclamation tasks from the reclamation cost estimate. DMG holds financial warranty in the form of two corporate surety bonds, totalling 544,437.00. The operation was active during the time of this inspection. All Rules referenced within this inspection report are taken from the Construction Material Rules and Regulations of the Colorado Mined Land Reclamation Board, effective 1 /96. If the operator does not possess a copy of the current Rules and Regulations, one may be requested from DMG for 58.00 plus postage. Mr. Gosney and Mr. Miller indicated that Western Mobile may become the successor operator of the Bayfield Pit No. 1 reclamation permit. Western Mobile, Four Corners Division, P.O. Box 367, 6699County Road 521, Bayfield, CO 81122,phone 19701884-9533, Greg Miller, General Manager. Rule 1.12 addresses permit transfers and succession of operators. DMG records do not indicate that the operator has submitted a request for succession of operator, as required by Rule 1.12.1121. Please find enclosed, "Transfer of Mineral Reclamation Permit and Succession of Operators Application Package", which contains the appropriate form provided by the Board for succession of operators. Please note that Section 34-32.5-1 2 511 11a11X1 of the Colorado Land Reclamation Act for the Extraction of Construction Materials, 34-32.5-101 et seq, C.R.S., 1995, as amended, states that the application for succession of operator shall be accompanied by the required fee in the amount of 5100.00. Operator stated a desire to expand the affected area beyond the currently approved north and east boundaries and to implement Phase 4, as depicted in the Master Plan submitted to the La Plata County Planning Department. Request for increases in affected area are appropriately submitted through the Amendment process. Please refer to Rules 1.1161 and 1.10 and Sections 34-32.5- 1121711a) and (bl and 34-32.5-125(111a)IVII of the Colorado Land Reclamation Act for the Extraction of Construction Materials, 34- 32.5-101, et seq, C.R.S., 1995, as amended, for descriptions of the Amendment process. Please find enclosed, "Construction Material Regular 112Operetion Reclamation Permit Application Package", which is the appropriate form for Amendment applications for Regular 112operations. Section 34-32.5-12511)le1(Vq of the Colorado Land Reclamation Act for the Extraction of Construction Materials, 34-32.5-101, et seq, C.R.S., 1995, as amended, states that applications for Amendment to Regular 112 operations shall be accompanied by the required Tee in the amount of 51550.00. Operator also stated that the Reclamation Plan for the Phase 5, 6 and 7 area may be modified to allow backfilling of the excavation with fines generated from the processing operation. Current conditions of the Reclamation Plan state that the excavation resulting from Phase 5, 6 end 7 area would be flooded and remain as a pond, similar to the Phase 1 area. Operator stated that the backfilled pit would be topsoiled and vegetated to irrigated pastureland standards. Such a request would have a significant effect upon the approved Reclamation Plan and should be submitted as an Amendment to the Reclamation Plan. Request to alter the Post Mining Land Use of the Phase 5, 6 and 7 area. from pond to irrigated pastureland, could be included in the Amendment required for increased affected area, addressed above. Mine identification sign was posted on the entrance road. Public access may be controlled by locked gate. Entrance road was well maintained. Operator stated that the alignment of the mine entrance road had been altered from the plans proposed on the Mine Plan Maps due to construction of office/shop building. All sections of the entrance road were located within areas approved for road or for processing facilities. No off site activity or environmental degradation has resulted from the realignment of the entrance road. Operator stated that correct alignment would be depicted on revised maps, as required by Rules 6.4.3(b) and Igl~ The operator inquired as to the possibility for removing the entrance road from the permit affected area since the entrance road has been approved as a permanent access road for the processing/office area. The processing/office area was previously approved as a permanent facility and was removed from the permit affected area under AM-01. Request for removal of the permanent entrance road from the permit affected area is appropriately submitted through the Technical Revision (TR) or Amendment IAMI process. Please refer to Rules 1.11491 and 1.9 and Section 34-32.5-12511)Ia11V11) of the Colorado Land Reclamation Act for the Extraction of