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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2002-111 <br />INSPECTION DATE 1-14-2003 INSPECTOR'S INITIALS SSS <br />OBSERVATIONS <br />This was pre-operational inspection conducted to verify and document the pre-mining condition of the site and to verify that all <br />details reported in the application are accurate and complete. Mr. Jim Stemrich, Mesa Environmental, Inc., consultant to the <br />landowner was present for a portion of the inspection. <br />The majority of the site is devoid of vegetation and topsoil due to past refinery related operations. However, there is more <br />vegetation on site, particularly at the west end, than is eluded to in the permit application. The operator is encouraged to have <br />the NRCS conduct a site vegetation study, and a person qualified in wetlands identification survey the site. A report should <br />then be submitted that satisfies the requirements of Rule 6.4.10. <br />Recent excavation has taken place in the south end of proposed Phase 1. It appears that the excavation is for removal of <br />overburden that was used to construct the Corrective Action Management Unit (CAMU), located northwest of the proposed <br />staging area, that is used to store waste products removed from the proposed permit area. Three Blue Herons were noted on <br />the ground in the vicinity of this excavation. <br />Oxidation pond #1 is currently being cleaned of petroleum product it contained and of contaminated soils in and around the <br />pond. These materials are reportedly being transported to the CAMU. Mr. Stemrich indicated that the northern portions of <br />Phase 2 and 3 had been used as dumping areas for solidified wastes that may need to be removed to CAMU as they are <br />encountered as will the scattered occurrences of globs of Gilsonite that occur west of the oxidation ponds in Phase 5. <br />The proposed sediment pond is to discharge.to a ditch that lies on property owned by Gary Williams Energy. This ditch <br />becomes part of Evaporation Pond No. 8 on the Gary Williams Property. Discharge from this pond is back.to the ditch and is <br />controlled by a flume and head gate located at the southwest corner. The southwest corner of Evaporation Pond No. 8 is <br />contaminated with what appears to be free petroleum product over the surface soils. The permit application, must include <br />measures to be taken to ensure sediment pond discharge is not directed to this, or any significantly contaminated area. <br />Numerous permanent man-made structures were observed on, or within 200 feet of, the proposed permit boundary that are not <br />shown on the permit application maps. These structures include power poles and lines, sheds, pond discharge gate valves, <br />numerous wells, piezometers, buried phone cable and junction boxes, fences (including a fence around the two Gary Williams <br />Energy ponds located just northeast of the proposed staging area). Those two ponds on Gary Williams Energy property are <br />shown on the map, but have not been addressed as permanent man-made structures. These and any other structures will <br />need to be added to the application maps where appropriate and addressed in the applicable exhibits. <br />The application maps indicate a wire fence, owned by Colorado State Parks is located on the south property boundary. This <br />fence is newly constructed, several strand barbed wire. The fence, however, is evidently not located on the property boundary. <br />Mr. Stemrich indicated that the fence would have to be moved. Apparently the fence was erected on the property boundary <br />indicated on Mesa County GIS maps that are evidently inaccurate in this case. The fence currently runs abng the south side of <br />the perimeter berm/road on the south side of the proposed Phase 1, 2, 3 and 4 areas of the permit area. However, on the west <br />end of Oxidation Pond No. 2 the fence cuts north approximately 100 to 150 feet into the proposed permit area before returning <br />to a westerly heading. The current fence location is not shown on the application maps. If the fence is not to be moved prior to <br />initiation of mining operations a note to this effect should be included in the application text and on the application maps. <br />Responses to this inspection report should be directed to Steve Shuey at the Division of Minerals and Geology, Grand Junction <br />Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-6368. <br />I & E Contact Address <br />NAME Harold Elam <br />OPERATOR Elam Construction, Inc. <br />STREET 1225 South 7`" Street <br />CITY/STATE/ZIP Grand Junction. Colorado 81501 <br />cc: Carl Mount -Denver DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CHI <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />