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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-2001-060 <br />INSPECTION DATE: 4/10/2008 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS THM <br />This inspection was conducted as part of the normal program established by the Colorado Division of Reclamation, <br />Mining and Safety and to assess the amendment to add 33.5 acres to the permit area. The Deakins Pit is located <br />approximately 1 miles east of Craig, Colorado off of 1St Street. The site is a 112 operation with 24.5 permitted acres. <br />Steve Baker of 313 Enterprises accompanied the inspector during the inspection. <br />The mine identification sign and the affected area boundary markers are in place and in compliance with rule 3.1.12. <br />The sign is located on the fence at the main entrance on the north side of the gravel mine. The permit boundaries are <br />comprised of fences that are easily identifiable around the entire perimeter of the mine. A buffer zone of 20 to 40 <br />feet was observed in most areas between the excavation areas and the boundary. <br />The proposed area to be added to the permit is 11.5 acres located immediately east the permit area and 22 acres <br />located across 1 st Street to the northwest. The proposed areas are located in an industrial area. The operator stated <br />that certain sections of the proposed areas are not going to be mined and used for industrial purposes. <br />The pit is currently active and evidence of recent activity was observed during the inspection. Various pieces of <br />heavy equipment were observed at the north end of the permit area. A crusher was observed at the center of the <br />mine. Stockpiles of various construction materials were observed on the pit floor in the middle of permit area. No <br />evidence of offsite storm water erosion was observed during the inspection. <br />Barrels outside of secondary containment, stained soil and used batteries were observed in the southeast corner of <br />the permit area. Per rule 3.1.6(b), disturbances to the prevailing hydrologic balance of the affected land and the <br />surrounding area and to the quantity or quality in surface and groundwater systems both during and after the mining <br />operation and during reclamation shall be minimized by measures that are in compliance with applicable federal and <br />Colorado water quality laws and regulations, including statewide water quality standards and site specific <br />classifications and standards adopted by the Water Quality Control Commission. The improper storage of <br />hazardous materials and waste is noted as a problem with corrective actions and a correction date on the last <br />page of this report. <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the <br />approved reclamation plan, DRMS will update the reclamation cost estimate to address the proposed amendment <br />acreage increase. The estimate will be forwarded to the operator under separate cover. <br />Photos that show the conditions observed during the inspection are included at the end of this report. <br />Responses to this inspection report should be directed to Travis Marshall at the Division of Reclamation, Mining <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone <br />no. 970-623-5596.