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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1984-108 <br />INSPECTION DATE 10/26/07 <br />INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of the Division's monitoring plan for permitted sites. The Olathe Pit is approved for <br />9.9 acres affected larid. Affected lands will be reclaimed to support wildlife habitat and general agriculture post- <br />mining land use. The Division holds $8,167 financial warranty. Four photos and a reclamation cost estimation <br />totaling $4,422 accompany this report. This report identifies several problems, which require corrective action from <br />the Operator. Details of the corrective actions and their associated deadlines are listed on page three of this report. <br />The 9.9 acre permit area is located within a previously disturbed area of approximately 20 acres located adjacent to <br />the west bank of the Uncompahgre River. According to permit documents, excavation would occur at the 6.02 acre <br />pit area, with material processing and stockpiling to occur at the 3.64 acre process area. The excavation area and <br />the processing area are connected by a haul road, approximately 350 feet long and 30 feet wide (0.24 acres). The <br />excavation area would be reclaimed as a pond to support wildlife habitat and the processing area would be <br />reclaimed as an alfalfa field to support agriculture post-mining land use. According to the approved plan, mining <br />excavation would not occur at the processing area. However, as shown in the photos, mining excavation has <br />occurred at the processing area to result in two ponds; a north pond and a south pond. Therefore, the mining <br />activity did not progress in accordance with permit conditions and the reclamation plan must be revised to reflect the <br />two ponds and no alfalfa field. <br />The permit documents do not verify that the Operator has procured a well permit for the evaporative loss of the <br />exposed groundwater for the two ponds created by this operation. Pursuant to Rule 3.1.6(1)(b), 6.3.3(i) and Q), the <br />Operator must minimize disturbances to the prevailing hydrologic balance by complying with applicable Colorado <br />water laws and regulations governing injury to existing water rights. Such compliance is typically demonstrated by <br />submitting to the Division, copy of the issued well permit from the Office of the State Engineer, Division of Water <br />Resources, for the excavation where groundwater is exposed. <br />As noted above, the Division has completed a reclamation cost estimation to reflect current conditions, totaling <br />$4,422. Therefore, assuming the Operator can demonstrate compliance with Rule 3.1.6(1)(b), the existing $8,167 <br />financial warranty appears sufficient to ensure completion of reclamation. However, as noted on page three of this <br />report, if the Operator cannot demonstrate compliance with Rule 3.1.6(1)(b) within the allotted trox matee two <br />Division will calculate a new reclamation cost estimation for backfilling both pits to an elevation app Y <br />feet above groundwater elevations to ensure compliance with 3.1.6(1)(b). <br />As noted in the Division's previous inspection reports, the site exhibits a serious infestation of knapweed, which <br />appears to have invaded affected lan oved weed co nrogplanaand Ru en3 1 10(6) were observped ing weed control <br />methods in accordance with the app <br />Response to this report should be directed the Division's office in Durango, to the attention of Wally Erickson, at <br />701 Camino del Rio, Room 315, Durango, CO 81301, phone (970) 247-5469. <br />I & E Contact Address <br />NAME Judy DeVincentis <br />OPERATOR Western Gravel, Inc. <br />STREET 3001 N. Townsend Avenue <br />CITY/STATE/ZIP Montrose CO 81401 <br />cc: Tony Waldron, DRMS <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />X SE, Durango Office <br />^ WOCD (CH) <br />