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IPage 21 MINE ID 11 OR PROSPECTING ID ~ M-1991-146 INSPECTION DATE 12/4 01 INSPECTOR'S INITIALS WHE OBSERVATIONS This inspection occurred in response to a complaint from Doug Follette, with Piecemakers, dated 10/26101. The complaint was received by DMG on 11/5/01. The inspection occurred in accordance with DMG policy to investigate such complaints within 30 days of receipt of the written complaint. Copy of Mr. Follette's complaint is attached to this report. The ZMK Gravel Pit is located approximately 5 miles north of Ouray, in portions of the NW '/. of the SW '/a of Section 2, T44N, R8W, NMPM, Ouray County. The reclamation permit is approved for 8.72 acres affected area, for extraction and processing of alluvial materials from the Uncompahgre River channel. Affected lands will be reclaimed to support industrial post mining land use. DMG holds 53,750 financial warranty. Permit History The original 110c permit was conditionally approved on 3/18/92, for 9.85 acres affected area, 59,300 financial warranty. However, the permit was not issued until 8/27/93, following receipt and approval of the financial warranty. On 5/23(94, DMG approved Technical Revision No. 01 (TR-01) to the permit, deleting the grade control sill, previously proposed across the south end of the permit area and river channel. On 10/28/98, DMG approved TR-02, to allow material screening to occur within the pit area. On 8/2/99, DMG approved TR-03, modifying the mine plan to eliminate Phase 2 activities and to allow material stockpiling to occur within the pit area. On 6/21 /01, DMG approved Acreage Reduction No. 01 (AR-01), deleting the 1.18 acres equipment storage area from the permit area. Under AR-01, the affected area was reduced to 8.72 acres and financial warranty reduced to 53,750. General Inspection Topics Mine identification sign was posted at the mine entrance. Affectec area was appropriately delineated. Mining related activities were confined to approved areas. Three groundwater monitoring wells, arranged in a NW to SE allignment and extending through the permit area, were intact. The monitoring wells are permitted through DWR file no. 18631. Review of the monitoring results indicate that the operator is current with the monthly monitoring requirement and is conducting activities in a manner which minimize disturbances to the hydrologic balance, as required by Rule 3.1.6(1-. Material screen and various stockpiles of material were present on the pit floor. Depth of the excavation appeared well within the 10' limitation of the permit. No standing water or seeps were observed within the pit. Pit inslopes for the north (downstream), south (upstream) and west sides were not steeper than 3H:1 V. East pit wall appeared steeper than 3H:1 V due to the steep outslope of the flood protection dike. Pit area appeared stable, evidence of slumping, sliding, excessive erosion or off-site damage were not observed. The excavation and processing area is separated from the low flow channel by a historic flood protection dike. Permit documents indicate that the flood protection dike was constructed by Ouray County, during the 1950's, to protect CR 32 and adjoining property from flooding of the Uncompahgre River. The operator had recently repaired a breach in the dike, resulting from a high flow event. The operation is approved to divert portions of the river flow through the pit during high water. Flow velocity through the pit area is reduced to encourage depostion of the excess bed load and to control erosion as pit overflow is returned to the main channel. After the high