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(Page 2) MINE ID # OR PROSPECTING ID #: M-1978-279 INSPECTION DATE: 1-25-05 INSPECTOR'S INITIALS GRM OBSERVATIONS This inspection was conducted as part of the normal monitoring program established by the Colorado Division of Minerals and Geology. The permitee and the inspector missed each other do to a scheduling error. The inspection was done prior to moving on to another commitment. The Goldman Pit is located south of the town of Silt just off County Road 335. The mine identification sign was not observed and must be installed per the requirements of Rule 3.1.12 (1) that state: The operator shall post a sign at the entrance to the mine site which shall be clearly visible from the access road and specify the following; a) the name of the operator; b) indicate that a reclamation permit for the operation has been issued by the Colorado Mined Land Reclamation Boazd, and; c) the permit number. The lack of an identification si¢n is noted as a problem with the corrective action(s) and correction date sroecified on the last naee of this report. The sign issue has been noted as an issue before. Staff understands that someone with gate access may be responsible for knocking the sign down. Therefore, it maybe better to move the sign back to the visual berm where the permitee has more control and is still visible from the entrance. The site is active with several stockpiles of material on site. A portable stacker, power plant and other equipment were noted on site. Current highwalls aze small in nature with the highest being near 15 feet. This is an improvement over the last inspection, which had highwalls in excess of 40 feet. A topsoil stockpile is noted along the north side ofthe pit floor azea and serves as a visual berm. Imported material of similar quality has also been placed here as well. The operator is required to protect the topsoil if in place far more than one growing season by rule. Staff did not note anybeneficial vegetation on the stockpiles or evidence of a tackifier agent. The lack of proroer erosion control on the topsoil visual berm is noted as a problem with the corrective action(sl and correction date ~ecified on the last image of this report. The inspector noted several problems with the proper storage and disposal of hazazdousmaterials /waste. Two fuel tanks were observed that did not have adequate secondary containment. Two industrial batteries were noted sitting on the bare earth, which exhibited signs of deteriorization. Also observed were spent grease tubes in the baze.ground as well as 5 gallon buckets ofwhat appears to be petroleum products. The inspector is listine the imroroper handling, storage and disposal of hazazdous materials as a problem at this time with a short time to correct the issue. Failure to correct the issue within 30 days or any subsequent violation of this Rule may result in the matter being set before the Boazd for possible Civil Penalties and or other action. Some cocklebur and thistle were noted on site. The plants aze isolated and at this time do not represent an infestation. The operator should take measures to ensure the problematic weeds do not tum into a bigger problem, which would require a Technical Revision to control them. On the small triangular parcel of the permit east of the access road, the inspector noted that beehives have been brought in since the last inspection. The inspector and the Division have no problem with the dual use of the area, especially given the beneficial use of the bees. However, staff must caution against turning the area into something that is deleterious in nature. Working hives and associated materials are fine, but the operator cannot allow the site to become cluttered with trash or other junk regardless of the landowner's wishes. The operator might look at finishing offreclamation of this azea and seeking a release so that it is not a reclamation liability, which the Division would have to bond to cleanup.