2008-08-19_INSPECTION - M1997058

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(Page 2) MINE ID # OR PROSPECTING ID # M-1997-058 INSPECTION DATE 08/05/08 OBSERVATIONS INSPECTOR'S INITIALS PSH This was an inspection for an amendment (AM-02) to the Hall-Irwin Baseline Resources site conducted by Peter Hays of the Colorado Division of Reclamation, Mining and Safety. Mr. Jim McFarland with Hall-Irwin Corporation and Ms. Danna Ortiz with Civil Resources were present during the inspection. The Baseline Resources site is located approximately 1 mile north of Brighton, CO in Weld County. The proposed amendment would change the post mine land use to developed water resource. A mine identification sign was posted at the entrance to the site. 40-acres (Phase 4) were added to the Hall-Irwin Baseline Resources site in 2001 (AM-01). Mining in Phase 4 was completed in late 2007. No mining activities were observed during this inspection. All mining activities have been moved to the Parker-Dersham Resource located adjacent to the Baseline site. The approved post mine land use for the amendment area is recreation, which includes a 26 acre unlined groundwater pond, 8 acres of wetlands and 6 acres for a future development site. The mining plan for the site was originally for vertical mine faces, however the site has been mined at a 3:1 slope in anticipation of converting the area into a 34.4 acre lined reservoir. 3:1 slopes were observed during the inspection and appeared stable. Mr. McFarland stated the City of Aurora intends to purchase the reservoir. The Phase 4 slurry wall will connect to the existing Baseline Resource and future Parker-Dersham slurry walls. The Office of the State Engineer is aware of the slurry wall installation. Dewatering operations were observed during the inspection. Mr. McFarland stated final reclamation, including establishing 3:1 slopes along the Bataa Oil pad easement and final reservoir grading will occur after dewatering. A large topsoil pile was noted along the western edge of the amendment site adjacent to CR 23 %. No signs of erosion or off-site damage were observed during the inspection. The required notice sign was observed during the inspection. The public comment period for the amendment (AM-02) ended on July 29, 2008. The Division did not receive any objections. An adequacy review letter was sent to Civil Resources by the Division on August 11, 2008. The Division holds a bond in the amount of $1,314,888 for the Baseline Resources site. Hall-Irwin submitted slurry wall specifications in the amendment application to qualify for the 20% slurry wall bond option. The estimated slurry wall dimensions of 3,285 feet long with a maximum depth of 45' and an average depth of 35' were provided by Civil Resources and used for the bond calculation. The Division estimates the total cost to reclaim the site, including AM-02, is $1,013,500. This is a reduction of $301,388. No problems or possible violations were noted during the inspection.