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~~ <br />(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1977-376 <br />INSPECTION DATE: December 75. 2000 INSPECTOR'S INITIALS: AIW <br />OBSERVATIONS <br />This inspection was conducted at the request of the Attorney General's Office to verify the adequacy o(the current financial <br />warranty. The operator of the mine, Canyon Quarry Company, has filed for bankruptcy protection and as a result, the Division <br />wants to ensure that our present financial warranty is adequate to cover the current reclamation liability. The site is located <br />just west of Canon City, Colorado in low mountainous terrain. The site generally has an east facing aspect and is vegetated <br />with pinon-juniper. <br />The financial warranty was last reviewed a couple of years ago and was deemed to be adequate at that time. At that time <br />there was no active mining disturbance, however, that situation has changed as there is currently active mining taking place on <br />the north end of the 11 acre middle bench. This disturbance currently covers approximately 2-3 acres and has created <br />approximately 600 linear feet of highwall approximately 25 feet high. There are also several small product stockpiles <br />(approximately 2000.3000 cubic yards) located just north of the main mining area along with several pieces of mining <br />equipment such as a crushing and screening plant and associated conveyors, front-end loaders, a small track hoe, etc. The <br />operator was not on site during this inspection and no material was being hauled off site during this inspection. <br />The additional disturbance is in compliance with the approved mining plan at this point. The final topography of the site calls <br />for a highwall bench configuration stair-stepping from west to east with approximately 25 foot elevation differences between <br />the benches. The width of the benches varies from 25 to 100 feet wide with an overall width of 800.1000 (eet and overall <br />length of approximately 2000 feet. Some backfilling is to be completed against the highwalls on each level based on <br />observations of the completed reclamation. <br />The present disturbance is in conformance with the approved mining and reclamation plan and the present financial warranty <br />is $48,500.00. This was last updated in 1993 and little to no disturbance has occurred on the mine site since that time. A <br />new estimate will likely yield little, if any, additional base costs, however, the increased production costs or inflation should <br />added to the base cost at a rate of approximately 4% a year or roughly $20,000.00 for the past eight years. As the mine is <br />presently in bankruptcy, it is not likely that a request to increase the financial warranty will be a high priority, however, it is <br />believed that the site is also for sale, and if sold, the new operator will be required to post an adequate financial warranty <br />when the permit is transferred. Therefore, this deficiency will be cited as a problem on page three of this report with a <br />corrective action date of March 18, 2001. <br />I & E Contact Address <br />NAME: lane Flanders <br />OPERATOR: Canvon Ouarrv Comanv cc: Jim Stevens-DMG <br />Robert Clark-AGO <br />STREET: P.O. Box 60155 ^ CE <br />^ BL <br />CITY/STATE/ZIP: Colorado SDfInRS, CO 80906-0155 ^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WQCD (CH) <br />^ OTHER <br />