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MINE ID # OR PROSPECTING ID #: M-1973-07 <br />INSPECTION DATE: 5/1-5/7008 INSPECTOR=S INITIALS: -11 E?_ <br />AJW <br />OBSERVATIONS <br />On May 15th, 2008 at approximately 1:30pm, I, Jared Ebert and Tony Waldron of the Colorado Division of <br />Reclamation, Mining and Safety conducted a pre-operational inspection of the Daniels Sand Pit #2, permit <br />number M-1973-073. The mine site is located approximately one mile north east of Academy Boulevard and I- <br />25; adjacent to Colorado Springs (not in the city). Mark Heifner of Southwestern Ecological Services, and <br />Ashley Kay Muhlestein, of Transit Mix Concrete joined us on the inspection of the site. <br />As on now, the site is permitted for 343.15 acres, the operator has filed an amendment application with the <br />office to add 9.15 acres to the permit area. In addition to increasing the permit acreage, the operator is making <br />changes to the current reclamation plan and mine plan to accommodate for the new construction for a major <br />highway to the Colorado Springs Airport. <br />The additional acres to the mine site will be located at the southern boundary of the permit area. The area is <br />known as "J Property Addition". At the moment a water remediation operation is in-place with many structures <br />in the area (see Figures 1-2 ). Mr. Heifner stated that mining within the new "J Property" will not commence <br />until the water remediation is complete. <br />The three major designated areas of the operation were inspected and they appear to be in good order. The <br />topsoil stockpile is located on the north east corner of the permit area. According to Ashley Muhlestein the <br />topsoil was recently seeded with grasses to stabilize the pile. The portion of the pit where the highway <br />construction is scheduled to take place appears to be graded appropriately for the construction to take place. <br />Currently the post mine land use is designated as "Industrial commercial", the amendment would like to change <br />the post mine land use to Wildlife Habitat (open space). This is potentially problematic, because the pit will not <br />be able to be released from its reclamation obligations if a highway is constructed on the site that is designated <br />as Wildlife Habitat. This problem can be mitigated by allowing the portion of the pit where the highway is to <br />be constructed to retain its previous post mine land use of Industrial/Commercial while allowing the remaining <br />areas to be reclaimed for Wildlife Habitat. This issue will further be addressed in an adequacy review of the <br />amendment application. Until the highway is constructed however, the soil in that area will need to be <br />stabilized with vegetation to avoid wind and water erosion and overall site deterioration. <br />The western sediment basin was also inspected. Currently the old pit is almost completely full of wet fine waste <br />sand. The slopes around the basin appear to be steep and eroded (see figure 5). Eventually the slopes around <br />the basin will need to be regarded to 3:1 slopes and stabilized if they are not submerged in the sediment. <br />According to Mr. Heifner, tamarisk is located within the western sediment basin; however we did not actually <br />see any. It is strongly recommended that the tamarisks be monitored closely and treated if necessary to ensure <br />that they will not spread around the mine site or allowed to cause off site damage.