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(Page 2) <br />MINE ID # OR PROSPECTING (D # M-2006-077 <br />INSPECTION DATE 12/11/06 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This pre-operation inspection was conducted as part of the Division's review process of a 110c permit <br />application. Two photos and a reclamation cost estimation accompany this report. <br />The application for the Morgan Pit describes a typical sand and gravel operation with conventional <br />excavation and on-site processing contained within a 9.9 acre permit area. The active 400-foot long <br />highwall of the northerly advancing operation wilt be mined at anear-vertical slope. The east and west <br />side slopes of the pit will be mined at 3H:1 V. Final slopes of the affected land will not be steeper than <br />3H:1 V and will be stabilized with vegetative cover. However, the flat pit floor will be stabilized with gravel <br />surface and utilized as a storage and parking area for heavy equipment. Reclamation will support <br />industrial/commercial post-mining land use. <br />The permit area appeared consistent with the descriptions provided in the application. Permanent man- <br />made structures located within 200 feet of the permit boundary appeared limited to west and south side <br />fence lines. Mining activities had not commenced. <br />The Division has completed a preliminary reclamation cost estimation totaling $8844. Please find <br />enclosed, 11 pages of summary, worksheets and data sheets utilized by the Division to estimate the cost <br />of reclamation. <br />On December 14, 2006, the Division completed its review process and approved the Morgan Pit <br />application. However, the permit will not be issued until the Division receives and approves a properly <br />excuited fiancial warranty in an amount not less than $8844. The Applicant has indicated a desire to post <br />bond in the form of a Certificate of Deposit. Therefore, the Division has enclosed copies of CD bond <br />forms with this mailing. <br />Responses to this inspection report should be directed to the Division of Reclamation, Mining and Safety, <br />701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247- <br />5469. <br />& E Contact Address <br />NAME Paul Morgan Excavating, Inc. <br />OPERATOR Paul Morgan Excavating. Inc. <br />STREET P.O. Box 82 <br />CITY/STATE/ZIP La Veta. CO 81005 <br />cc: Tony Waldron, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />X Joe Gagliano, agent <br />