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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1999-069 <br />INSPECTION DATE 04/23/03 <br />INSPECTOR'S INITIALS ESC <br />This was a routine inspection of the Wagner/Kauffman Pit #3 conducted by Erica Crosby of the <br />Colorado Division of Minerals & Geology. Mary, Frank and Troy Kauffman of Jake Kauffman & <br />Son, Inc. were present during the inspection. <br />The Kauffman Pit is located approximately 1.5 miles southeast of Loveland in Larimer County, <br />Colorado. The 112 Mining and Reclamation Permit was issued to Jake Kauffman & Son, Inc. on <br />January 5, 2000 for a permit area of 232.5 acres. The total area to be affected is 168 acres. <br />Mining was taking place during the inspection. The operator has recently completed mining of <br />Phase I (also known as the Wagner portion of the property) . The site is dry mined by <br />dewatering the pit prior to excavation. The gravel resource is approximately 10 feet thick, <br />where the overburden material is approximately 8 feet thick. A dewatering trench has been <br />constructed in Phase II, and overburden removal has started. Due to the demand of sand and <br />gravel, mining is ahead of schedule. <br />Phase I is almost completely bac kfilled and graded to original contours. The operator has <br />contemporaneously reclaimed the site as mining has progressed to the west. The site has been <br />backfilled with old lime material settled in basins used by the Great Western Sugar Beet <br />Company during processing of the sugar beets. This material is located on the west half of <br />the permit area (Phase II). As mining progresses, the lime soils are stripped and used as <br />bac kfill to return the area to the original grade. Initial sampling of the material during <br />the permit review process identified the material as inert. The area will eventually be <br />reclaimed to pastureland. Phase III will be reclaimed to a lined private lake. <br />A mine identification sign was posted at the mine entrance. The operator recently filed a <br />technical revision to the permit to change the reclamation seed mixture for the Phase I area <br />of the project site to include native grasses, forbs and shrubs. The application status is <br />pending. <br />The Division currently holds a reclamation bond in the amount of $201,100.00. This amount is <br />adequate for the noted disturbance on site. <br />I & E Coatact Address <br /> j' CE <br />NAME Marv Kauffman j' BL <br />OPERATOR Jake Kauffman & Sons Inc. j' FS <br />STREET 808 SCR 9E I' HW <br />CITY/STATE/ZIP Loveland, Colorado 80537 j' HMWMD (CH) <br /> j' SE <br /> <br />cc: Carl Mount; DMG <br />