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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1977-347 <br />INSPECTION DATE 01/07/03 <br />INSPECTOR'S INITIALS ESC <br />This was an inspection of the Slab Canyon Quarry conducted by Erica Crosby of the Division <br />of Minerals and Geology. Gordon Benton with Holnam, Inc. was present during the <br />inspection. <br />A 112 Mining and Reclamation Permit was issued to Ideal Basic Industries, Inc. on October <br />10, 1978 for a permit area of 30 acres. AM-O1, approved by the Division on April 28, <br />1994, increased the permit area to 250 acres. The permit was transferred to Holnam, Inc. <br />on March 23, 1990. The operator is in the process of transferring the permit to Holcim <br />(US), Inc. but the application was deemed incomplete on August 5, 2002 because a <br />performance warranty was not properly executed. <br />The Slab Canyon Quarry is located 7 miles northwest of Buckeye in Larimer County. No <br />mining was taking place during the inspection. According to Gordon Benton, all of the <br />Holnam sites in Larimer County shut down on September 1, 2002. Holnam will either sell <br />the properties or commence reclamation over the next 5 years. <br />Mining is the Slab Canyon Quarry ceased 8-10 years ago. Mining and reclamation was <br />limited to Phases 1. The upper portion of the quarry has been reclaimed utilizing the <br />stone berm filters and tree pads approved in the AM-O1 reclamation plan. The berm filters <br />are well vegetated with perennial grasses. The Ponderosa Pine trees planted in the berms <br />appear to be thriving. Tree heights vary in height from 1 foot to 3 feet. Trees planted <br />higher on the slope appear to be larger and more mature. The landowner recently installed <br />a large radio tower on top of the ridge, in the middle of the Phase I reclamation. <br />Construction of this tower and associated facilities affected some of the reclamation done <br />by the operator. The operator will need to address this facility, and associated <br />disturbance in the reclamation plan in the form of a revision to the permit. Such <br />revision will need to be submitted prior to release of the site. <br />The lower portion of Phase I consists of an open pit that has not been reclaimed. The <br />operator stated that this pit acts as a sediment control facility for the site. The <br />Reclamation Plan Map of AM-O1 depicts a number of stock water basins to be constructed on <br />site. The stock water basins for Phase I could not be located during the inspection. The <br />operator stated that the old quarry is used as a sediment impoundment structure. Drainage <br />from Phase I will most likely bypass the low area of the quarry due to the work associated <br />with the radio tower. Water appears to be directed in a small trench to the north of the <br />quarry where it is diverted off site. A gully was noted leading off site in the vicinity <br />of outfall #3. The operator will need to implement the sediment control devices as <br />approved in AM-O1, or revise the plan in the form of a revision to the permit. Because <br />erosion features were noted off site, the Division will identify this issue as a problem. <br />Please see page 3 for further detail. <br />The Division currently holds a financial warranty in the amount of $184,819.00. This <br />amount is adequate for the disturbance noted on site. <br />I & E Contact Address <br /> ^ CE <br />NAME Mr. Gordon Benton ^ BL <br />OPERATOR Holnam, Inc. ^ FS <br />STREET P.O. Box 1548 ^ HW <br />CITY/STATE/ZIP LaPorte, CO 80535 ^ HMWMD (CH) <br /> ^ SE <br /> ^ WQCD (CH) <br />Cc: Carl Mount; DMG (via electronic transmission) <br />