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(Page 3) <br />MINE ID # OR PROSPECTING ID # M-1987-091 UG <br />INSPECTION DATE 5/6/08 INSPECTOR'S INITIALS RCO. AJW <br />It appeared during the current inspection that the melting of the snowpack in the vicinity of the site had been underway for a <br />period of several weeks, since roads and open slopes were fairly dry, and runoff could continue since snow still existed in the <br />shaded and wooded areas. Gulch flows were estimated at 100 to 200 qpm immediately above the 6 level pad much of which <br />was intercepted by the liner installed in 2007, and conveyed effectively throughout its length to its terminus ultimately <br />discharging this flow amount onto the wooded hillside Flow rates were large enough that most of the runoff was reaching the <br />the gulch as surface flow, with little or no infiltration occurring. Recognizing the erosion that was occurring, 2 workers were <br />actively attempting to install light plastic sheeting in a temporary manner from the lower end of the geotextile liner down through <br />the woods to the gulch below the dump. The flow was forceful enough to make such installation difficult, and useless after a <br />short time; the plastic was soon carried down the slope. Soon afterward, while mine personnel and inspectors watched, the <br />earth on the hillside became so saturated by the gulch flow that a localized portion of it blew out and ran down the gulch below <br />the permitted area, knocking down trees and carrying rocks and sediment The amount of the failed hillside that moved was <br />estimated to be 200 cubic yards with larger debris coming to rest on the old road leading to the Gold Quartz mine while the <br />water and finer sediment continued down. <br />Several mine personnel drove immediately down to the outlet of Deadman Gulch at Hwy 149. The Division inspectors <br />assessed the continued runoff and condition of the failed hill slope, and concluded that there would be further erosion and <br />sediment transport down the gulch, but small likelihood of additional large slope failure. Division inspectors and the operator's <br />agent onsite agreed on the need for identifying the needed additional structural controls and installing them promptly (in the <br />interest of quickly ensuring site stability). Inspectors drove to the gulch outlet at the highway, and observed a culvert clogged <br />with gulch mud, and CDOT personnel clearing gulch mud from a 200-foot stretch of hi hway pavement, while an officer with the <br />county sheriff controlled traffic. Farther down the gulch, below the highway, inspectors observed that muddy water had entered <br />a landowner's pond. Flows had greatly diminished, and there was no coarse material, but the flow was still very muddy. The <br />gulch distance from the failure to the first highway crossing is 2700 feet or more and the additional distance to where mud was <br />last observed is over 400 feet. Division inspectors were unable to closely inspect the Lake Fork at or below its confluence with <br />Deadman Gulch. <br />The slope failure was caused by an activity carried out by or on behalf of the operator inside the permitted area but the failure <br />and the portion of the gulch affected were outside the permitted area due to incomplete construction of the diversion structure <br />Damage to areas outside the permitted area boundary is a possible violation (pursuant to CRS 34-32-116(7)(8) (h) and (0) <br />As noted on page one the topics of "Hydrologic balance," "Erosion/sedimentation " and "Offsite damage" are shown as <br />possible violations. This matterwill be scheduled for hearing before the Mined Land Reclamation Board. The operatorwill be <br />sent a separate letter advising him of the scheduled hearing, possibly to be held at the June or July 2008 meeting. If the <br />operator has installed structures or implemented certain practices, in efforts to correst the problem of uncontrolled <br />sedimentation, please contact this office and/or bring evidence of such to the Board hearing. <br />An issue identified in the 6/8/07 inspection report involved changes to the operation, activities, methods and structures, that are <br />being implemented without the appropriate revisions being made to the DRMS permit. Even though the changes may be <br />proposed or implemented to comply with another agency's requirements, the changes must still be made to this permit also. If <br />the changes are operational they may be added as a technical revision (TR). If the changes involve addition of lands outside <br />the permitted area, such as the widened road and lower gulch limestone treatment or diversion pipe for example, they must be <br />added as an amendment (AM). Currently, there are onsite changes that have not been approved by this office as technical <br />revisions or amendments, and there may be other changes being planned The operator is reminded that this permit is a DMO <br />and it is important that structures and plans be engineered and certified if appropriate and that revisions are submitted to this <br />office for proper review. At this time, this is not noted as a problem, since the other issues identified in this report will be <br />corrected through the proper submittal of materials for permit modifications. <br />No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of <br />Reclamation, Mining and Safety, 701 Camino del Rio, Room 315, Durango, Colorado 81301, Attn: Bob Oswald; phone no. 970- <br />247-5193. (As of 10122/07 we have a different room number. Please revise your records as necessary.) <br />Cont.