INSPEC42314

• Permit No: M1984036
• IBM Index Class Name: Inspection
• Doc Name: Inspection Report
• From: DMG
• To: Tusco Inc.
• Inspection Date: 1/27/2004
• Media Type: D
• Archive: No

(Page 2)
MINE ID # OR PROSPECTING ID #: M-ioua-n~~
INSPECTION DATE: ~/~~ma INSPECTOR=S INITIALS: TAG
1. A site inspection of the Dakolios Pit No. 1 was made in response to a citizen complaint received on January 23, 2004
from a neighbor, Jerry Gould at 12480 Weld County Road 13 (see attached correspondence). The citizen complaint
alleges possible impacts to the quality of water in Mr. Gould's domestic groundwater well, Well Permit No. 213672. Mr.
Gould indicated that his domestic well is steel cased, approximately 35 feet deep, and completed in the Laramie Fox Hills
aquifer. The Dakolios Pit is located 7 miles west and 2 miles south of Platteville; and immediately south of the St. Vrain
River and immediately east of Weld County Road 13. Present during the inspection was Jerry Gould, and Jack Varra,
Chris Varra, Brad Janes, and Mike Ramsey of Varra Companies, Inc.
2. Review of the permit file indicates the Dakolios Pit No. 1 is permitted for 120 acres. The mine plan specifies de-
watering and dry mining techniques. The site will be reclaimed to developed water resources with two ponds of 50.17
acres and 17.17 acres. The operator has posted a financial warranty of $87,200 in the form of a corporate surety.
3. The Dakolios Pit No. 1 is an active operation. The operator is actively excavating aggregate materials in the northwest
1/3 of the site (Pit II; Phase 3,4,7 areas). This inspector estimated the depth of excavation at 25'. The northeast 1/3 of
the site (Phases 1 & 2) contains a freshwater pond approximately 10-12 acres in size that is being backfilled with wash
fines and inert construction materials, in accordance with the approved mine plan. The operator has recently begun
routing pit water from de-watering operations in Pit II into the freshwater pond, which then drains to the north and
discharges into the St. Vrain River under the terms of an approved water discharge NPDES Permit. All parties present
confirmed an apparent "drainage" concern as water in the freshwater pond is backing up through a partially clogged
culvert in the southwestern portion of the freshwater pond. Process water backs up through the culvert and into an
irrigation ditch running along Mr. Gould's property. Mr. Gould reported that that the irrigation ditch historically is dry at
this time of year, but now contains pit water which stagnates and creates an unpleasant odor. Mr. Chris Varra agreed to
have the culvert cleaned out on the weekend of January 31, 2003 and reestablish positive drainage from the freshwater
pond northward toward the St. Vrain River. Also, Mr. Varra agreed to contact Mr. Gould when these measures have been
completed. Mr. Gould indicated that these measures were satisfactory to him, and that he will contact Mr. Varra if the
current water quality concern with his well persists even after the drainage improvements have been completed. The
Division considers the concern of pit water backing up into the irrigation ditch on Mr. Gould's property to be a problem
that will require corrective actions. Please see page 4 for details.
4. This inspector notes that there are a number of high pressure gas structures in close proximity to Mr. Gould's
groundwater well. These structures include gas well(s), processors, separators, gas lines, and a large storage tank. The
nearest structure is a gas well measured at 125' from Mr. Gould's groundwater well. The gas structures are owned and
operated by Kerr McGee Rocky Mountain Corporation, are identified as Gould Lee Jr. Unit #1, and are located in the
SWl/4SW1/4 of Section 31, T3N, R67W in Weld County.
5. A gallon of tap water was collected from Mr. Gould's residence and evaluated. This inspector noted the tap water
exhibited a very strong, pungent, "rotten egg" odor. This inspector also noted the odor was significantly stronger and
more pungent than the unpleasant odor of water in the irrigation ditch. The Division advises Mr. Gould to collect a fresh
sample of tap water in an air tight container and deliver, within 48 hours, to the Colorado Department of Health's
Laboratory for analysis of sulfate, hydrogen sulfide gas, and other pertinent gases. The laboratory is located at 8100
Lowry Boulevard, Denver, CO 80230-6928 (US Mail: PO Box 17123, Denver, CO 80217 [phone] fax (303) 344-
9989). I have attached a copy of the lab analysis form for your use. The Division also advises Mr. Gould to contact
Susan Nachtreib of the Colorado Water Quality Control Division @ [phone], Dave Nettles of the Office of the State
Engineer @ [phone], Randall Ferguson of the Colorado Oil & Gas Conservation Commission @ [phone]
x118, and Kerr McGee Rocky Mountain Corporation @ [phone] for further assistance in resolving the water quality
concern.
6. A copy of this report is being forwarded to the various parties noted in item 5 above.