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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-i a~R-nsF <br />INSPECTION DATE: i ~,Lfi/n't INSPECTOR=S INITIALS: ~_ <br />1. Apre-operation site inspection of the Durham-Pit 117 was made in response to the operator's recent submittal of a <br />permit amendment application, AM-1. The inspection was conducted on October 24, 2003 and on November 6, 2003. <br />Present during the inspection were Brad lanes of Varra Companies, Inc., and Tom Schreiner and Carl Mount of the <br />Division. The operator has submitted an amendment application (AM-1) as a corrective action for problems specified in <br />the Division's previous January 9, 2003 inspection report. <br />2. The operator has posted an entrance sign as required by Rule 3.1.12. <br />3. As noted on the applicant's Exhibit C -Mining Plan Map, excavation has been completed in the northern half of Tract A <br />and there is active excavation of aggregate materials in the southern half of Tract A. Tract A comprises the eastern <br />portion of the Durham Pit. Mr. Janes estimated an average pit depth of 25', a maximum pit depth of 40', and pit slopes at <br />a 0.5/1 configuration. At the time of inspection, there was off-site discharge of process water from the northern boundary <br />of the permit into the Poudre river. The proposed amendment application specifies de-watering, dry mining, and off-site <br />discharge of process waters. Prier to this Inspection, the operator had supplied the Division with written confirn,ati~n of <br />an approved temporary substitute supply plan from the Office of the State Engineer (OSE). Compliance with current and <br />long-term OSE permitting requirements is being addressed in the AM-1 submittal. <br />4. As part of the AM-1 amendment application, Varra Companies, Inc. (VCI) has provided an Exhibit C -Mining Plan Map <br />which adequately shows the Location of all significant, valuable, and permanent man-made structures contained on the <br />area of affected land and within two hundred (200) feet of the affected land, per Rule 6.4.3(9). <br />5. The fuel depot in the center of the operation was inspected. A large tank containing diesel fuel and associated piping <br />was found to have a slight leak. Discolored, contaminated soil was found within the concrete containment system. Mr. <br />Janes immediately requested other VCI personnel to investigate the leak and repair the leaking pipe system as soon as <br />possible. The plant manager reported that he would have the system repaired within 24 hours. The extent of <br />contamination was unknown at the time of inspection. The fuel tank is estimated to be 80' from the edge of the Tract A <br />excavation and 25'+ above the pit dewatering trench. There was no visual evidence of petroleum contamination on the <br />exposed groundwater in the de-watering trench. Digital photographs of the fuel leak and contaminated soil were taken <br />and are attached to this report. The Division considers this matter to be problem as the extent of contamination is <br />unknown and the operator could not verify whether the alluvial groundwater within the affected land had or had not been <br />adversely affected as a result of the fuel leak. The Division requests that the operator submit a report in the form of a <br />technical revision which defines the vertical and horizontal extent of contamination, verifies whether groundwater has <br />6. During the inspection, it was noted that VCI had excavated within 200' of gas structures in several locations within the <br />affected area in the absence of a notarized agreement with the owner of the structure or an adequate engineering <br />evaluation (stability analysis) as required by Rule 6.4.19. Digital photographs of the gas structures and nearby <br />excavations were taken and are attached to this report. The structures are located in the southern half of the Tract A - <br />Active Extraction Area, and are listed as follows: <br />A) Merit Energy, M&M Dee J 6-10, tank & separator/processor <br />excavation to within 77' of gas well <br />excavation to within 100' of storage tank <br />excavation has been backfilled and finish graded to 3:1 contours <br />B) Merit Energy, Emily 7-10 <br />excavation to within 25' of gas well <br />: excavation to within 31' of gas processor <br />excavation 25'+ depth with 0.5/1 - 1:1 pit walls <br />