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REGEC` "~'~ I INTRODUCTION APR 1 8 t~U6 Division of Minerals anU Geology The Bellgazdt Pit, located approximately 9 mites east of the town of Montrose Colorado in Montrose County, was initially permitted and mined in 1977 by the Colorado Highway Department. The Colorado Mined Land Reclamation Division (now Division of Minerals and Geology) assigned permit # M-77-085 to the site. A special use permit was also granted by Montrose County at that time. The site was initially permitted as a limited impact 110 permit comprised of 9.0 acres, which aze primarily hidden from view of other properties since the site is located on private land in a small draw approximately 3/4 mile north of Highway 50. In 1980, the permit was transferred to the landowner, August Bellgardt. Minor amounts of sand and gravel were removed from the site until 1996 when Mr. Bellgazdt died. Mazgazet Hale bought the property from the Bellgazdt estate in the latter part of 1999 and Western Gravel Inc. became the operator in the latter part of 2000. Since that time, Western Gravel has sold sand and gravel from the site. The initial reclamation bond for the site was $2500. The bond was recalculated in the eazly 1990's to be $8700 and was recalculated again in 1999 to be $9517. The Amendment in 2002 for the Bellgazdt Pit added 10.0 acres to the permit azea for gravel mining reserves. This addition was also subject to the Special Use permit requirements in Montrose County and a new Special Use Permit was issued in that yeaz. The flat portions of this added area were to be reclaimed to irrigated pasture while the south facing slope was be reclaimed to dry rangeland. Therefore, the new permit azea from the 2002 Amendment was 19.5 acres. The original area as well as the new area consists of primarily dry hillsides with a dry terrace deposit of gravel located above Ellison Gulch which feeds Cedaz Creek along Highway 50. Since the permittee, August Bellgazdt had died prior to submittal of the 2002 Amendment, and since Mazgazet Hale had assumed the property, the 2002 Amendment was done with Margaret hale signing for August Bellgazdt. A new bond was calculated for the additional lands for the 2002 amendment, which increased the bond to $32,433. As of the end of 2005, the mining has progessed according to schedule and the landowner, Mazgazet Hale, has agreed to mine additional land to the west of the current operation. Discussions with the CDMG showed that a change of permittee to Mazgazet Hale was extremely difficult since August Bellgardt Pit 1/06