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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1999-069 <br />INSPECTION DATE 11/08/05 <br />INSPECTOR'S INITIALS ESC <br />This was an inspection of the Kauffman Pit conducted by Erica Crosby of the Colorado Division <br />of Minerals & Geology. Troy Kauffman of Jake Kauffman & Son, Inc. and Bill Schenderlein of <br />the Applegate Group 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 />May 14, 1979 for a permit area of 58 acres. The permit was amended in 1989 to increase the <br />permit area to 83 acres. <br />Only a portion of the site was inspected, in particular the 55-acre area that will be amended <br />to the Wagner/Kauffman Pit #3, Permit M-1999-069 located north of the area. Under the <br />Amendment O1 Application (AM-01) for the Wagner/Kauffman Pit #3, the operator intends to <br />increase the permit area by 55 acres to the south. The entire pit area will then be <br />reclaimed to a clay-lined reservoir used for future water storage. <br />Mining in the 55-acre parcel is currently taking place. The area adjacent to the Big Thompson <br />River has already been mined and backfilled for a distance of approximately 200 feet. <br />According to the operator, this area was mined 5-6 years ago. Under the AM-O1 application <br />for Permit M-1999-069, the operator intends to reclaim the clay-lined reservoir at least 400 <br />feet from the river. Topsoil piles were noted in the bottom of the active pit, and are not <br />affected by the active mining operation. <br />In order to release the Kauffman pit of the 55 acres, the operator will need to submit an <br />acreage reduction request. At the request of the operator, the approval for the acreage <br />reduction will be approved concurrently with the AM-O1 application for the Wagner/Kauffman <br />Pit #3, Permit M-1999-069, and submittal of any new required bond (the operator will need to <br />waive the timeframes associated with the acreage reduction so they may occur concurrently). <br />In order to avoid another inspection of this site, the acreage reduction request must be <br />submitted within 60-days of the Division's inspection. <br />I & 8 Contact Addreea <br /> j' CE <br />NAME Mary Kauffman j' BL <br />OPERATOR Jake Kauffman & Sons Inc. j' FS <br />STREET 808 SCR 9E j' HW <br />CITY/STATE/ZIP Loveland, Colorado 80537 j' HMWMD (CH) <br /> j' SE <br /> j' WQCD (CH) <br />cc: Carl Mount; DMG <br />Bill Schederlein; Applegate Group <br />