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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1977-205 <br />INSPECTION DATE 8-23-2007 <br />INSPECTOR'S INITIALS SSS <br />OBSERVATIONS <br />The Division of Reclamation, Mining and Safety (DBMS) conducted this inspection at the operator's request as they were <br />considering submitting some revisions to the mining and reclamation plans, a succession of operator, and an acreage <br />release for the instream portion of the site which is to be placed into a conservation easement. <br />Phase 1 -The approved reclamation plan indicates this phase is to be a lake with a compacted earth dam and adjustable <br />height outlet. The last inspection on December 8, 2004 observed that phase 1 was nearly mined out, the dam and <br />outlet had been installed, and most of the pit slopes had been sloped to final grade. During this inspection it was noted <br />that the dam had been breached and water discharging from the pit, through the breached dam, is clear. Before any <br />activity takes place in the phase 1 pit that might lead to discharge of sediment laden water, a sediment control system <br />will need to be in place to treat the discharge. these problems were noted in phase 1 : <br />Several problems were noted in the phase 1 area. The Phase 1 dam is breached where the outlet was <br />apparently removed. The dam and outlet had been inspected and signed off by the Office of the State Engineer. <br />This failure to comply with the conditions of the reclamation plan is noted as a problem that has been corrected <br />through submittal and approval of technical revision no. 2 (TR-02) which calls for a dike to be constructed to <br />replace the dam and the outlet structure to be moved to the phase 2 area. The correction date is set at January <br />22, 2008 which is the date that TR-02 was approved. The constructed dike will effectively act as a dam so the <br />operator will need to check with the Office of the State Engineer to determine if they require the dike and outlet <br />to be inspected and approved by that office. <br />Groundwater inflow to the pit has the water level at an estimated average depth of 2-3 feet, significantly below <br />the historic water table elevation. The pit is discharging through the breached dam directly to the river. This <br />dewatering of the pit, directly to the river is not in compliance with the permit requirement to dewater only to <br />facilitate final excavation/clean-up of the pit floor and the requirement to pump the discharge upgradient for <br />irrigation use by the landowner. The dewatering timing restrictions and the requirement for dewatering discharge <br />to be pumped to lands upgradient from the pit for irrigation were placed on the permit in an attempt to minimize <br />stress and mortality of the mature cottonwoods adjacent to the pit. This problem has been corrected through <br />submittal and approval of technical revision no. 2 (TR-02) which allows the operator to maintain the pit in a <br />dewatered condition, but they must pump clean settling pond discharge to areas upgradient of the wetlands and <br />riparian areas. The correction date is set at January 22, 2008 which is the date that TR-02 was approved. <br />Pumping clean water to the wetland and riparian areas must begin as soon as possible. <br />The ranch dike between phase 1 and the river reportedly blew out in 2005. This incident was not reported to <br />DBMS. A dike was re-constructed in the location of the ranch dike, but is more substantial and is intended to be <br />permanent. The dike was reportedly not built to any approved design specifications and as-built evaluations <br />were not conducted during construction. This problem has been corrected through submittal and approval of <br />technical revision no. 2 (TR-02) which contains a commitment that the operator will provide a complete analysis <br />of the dike demonstrating a stability safety factor of at least 1.5. The correction date is set at January 22, <br />2008 which is the date that TR-02 was approved. The stability demonstration is currently under review by <br />DBMS. <br />Phase 2 - Many problems were noted in the operation of phase 2. Oldcastle SW, Inc. has leased the pit from Tri County <br />Gravel but is not operating in compliance with the approved mining and reclamation plans. Oldcastle's failure to operate <br />in compliance with the specifications and requirements of approved reclamation permits has been noted at numerous <br />sites in the past and is common practice for Oldcastle. Oldcastle must refrain from changing details of their operations <br />without first securing DRMS approval of a revision to the reclamation permit for the site they are operating. <br />The permit specified that the pit dewatering be pumped and used for irrigation of the Curry property. This <br />requirement was placed in the permit in an attempt to keep the water table, upgradient of the pit, as high as <br />possible to keep the mature cottonwood trees alive. During this inspection the pit is dewatered and pumping <br />maintains the dry pit. Dewatering discharge is pumped to the river. This failure to comply with conditions of