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(Page 2) MINE ID # OR PROSPECTING ID # M-1981-022 INSPECTION DATE 01/29/04 INSPECTOR'S INITIALS ESC OBSERVATIONS This was an inspection of the Glasa Gravel Pit, File No. M-1981-022 conducted by Erica Crosby of the Colorado Division of Minerals & Geology. Bob Gowing of Connell Resources Inc. was present during the inspection. The Glass Gravel Pit is located 1.5 miles northwest of Fort Collins in Larimer County, Colorado. A 112 Mining and Reclamation Permit was issued to Connell Resources, Inc. on May 20, 1981 for a permit area of 15 acres. A permit sign was posted at the entrance to the site. Mining is complete at the site. According to the approved reclamation plan, a lake surrounded by a landscaped area including a picnic area, a surfaced parking lot and foot trail access will be constructed. The landscaped area will be topsoiled to a depth of at least 12", graded and seeded. The average depth of the lake is 20 feet, and the slopes will be reclaimed to Sh:ly. In addition, the reclamation plan calls for tree and shrub planting consisting of a 3-row buffer/windbreak about 1,000 long around the western portion of the site. The approved reclamation plan is attached. This plan was approved under a technical revision (TR-O1) on October. 23, 1986. Connell Resources has been importing inert fill material from local construction jobs and filling the northwest edge of the pond. The material consists of clean overburden fill mixed with soil and rocks. Mr. Gowing stated that Connell's intent is to fill as much as the pond as possible to eliminate the exposure of groundwater. The Division was unable to find any information in the permit file regarding the approval of the disposal of inert material at the Glass Pit. In order for the operator to reclaim the site using inert material, compliance with Rule 3.1.5(9) will need to be met. A copy of the rule regarding use of inert fill is enclosed. Because inert fill has already been placed in the pit the Division considers this a problem that needs to be addressed. Please see page 3 for compliance due dates. It does not appear that Connell Resources is carrying out the approved reclamation plan in terms of reclamining the site to a picnic area, foot trail access, parking lot and landscaping that involves extensive tree and shrub planting. in addition, Connell is decreasing the size of the lake with the disposal of inert fill. If Connell intends to change the reclamation plan to eliminate all or a portion of the pond or other components of the reclamation plan, then a revision to the permit will need to be filed. I & H Contact Address r NAME William Welch j' OPERATOR Connell Resources, Inc. r STREET 4305 East Harmony Road j' CITY/STATE/ZIP Fort Collina, Colorado 80525 j' cc: Carl Mount; DMG (via electronic transmission) r CE BL FS HW HMWMD (CH) SE j' WQCD (CH) Bob Gowing; Connell Resources, Inc.