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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1997-084 <br />INSPECTION DATE 8/11/06 INSPECTOR'S INITIALS RCO <br />OBSERVATIONS <br />This inspection was performed by the Division as part of its monitoring of Construction Materials 110c permits. There was no <br />activity at the site and no operator was present during the inspection. The required permit sign and markers were observed <br />onsite. All signs of permit disturbance are within the approved permit area boundaries. <br />The site has only been minimally affected, and that limited disturbance is already several years old (it was documented during <br />the Division's 10/26/01 and 4/9/04 inspections). No reclamation of this initial disturbance has been performed. Some volunteer <br />vegetation has become established on the affected areas. A deer was observed on the site. <br />Inactivity at a permitted site is termed "temporary cessation" in the Division's Construction Materials Rules and Regulations, for <br />which there is a 5-year maximum. The site has not been active for nearly five years and the operator is reaching the end of the <br />5-year period for temporary cessation. The operator is referred to Rule 1.13, which explains what activities are considered <br />mining or reclamation, what the time limits are for inactivity, and how to request approval for an additional period of inactivity. <br />The Division considers the date of the 10/26/01 inspection to mark the initiation of the 5-vear period of temoorarv cessation, <br />which will expire on 10/26/06. The fact that there is no apparent move toward either reactivating the mining or beginning the <br />reclamation, though the five vears is almost expired, is noted as a problem in this report. The correction of this problem will be <br />for the operator to send evidence to this office that activity has recommenced, or reclamation has begun, by the correction date <br />shown on the last page. <br />The bond was recalculated in 2004, and is considered adequate at this time. <br />No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of <br />Reclamation, Mining and Safety, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no. 970- <br />247-5193. <br />I & E ContactAddress cc: Tony Waldron, DRMS <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Reef Gillum <br />Horizon Ranch. LLC <br />PO Box 190 <br />Fornev TX 75126 <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />