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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2000-154 <br />INSPECTION DATE 8/27/08 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of the Division's routine monitoring of permitted operations. The <br />Hankins Stone Quarry #1 is approved for 32.5 acres affected lands for the extraction of sandstone <br />products. Explosives will not be utilized. Affected lands will be reclaimed to support rangeland and <br />wildlife habitat post-mining land use. The Division holds $16,790 financial warranty. Three photos <br />and an updated reclamation cost estimation totaling $16,604 accompany this report. <br />Mining activities were active during the time of this inspection. Mine identification sign and permit <br />boundary markers were posted. Activities were confined to approved areas. The mining operation <br />has affected approximately seven acres located in the southwest portion of the permit area. The <br />operator has completed backfilling, grading and topsoil replacement for approximately two acres. A <br />mobile toilet was located on site. Affected lands appeared stable and well maintained. <br />The Division has reviewed the current cost of reclamation totaling $16,604. Please find enclosed, <br />11 pages of summary, worksheets and data sheets utilized by the Division to estimate the cost of <br />reclamation. Therefore, the existing $16,790 financial warranty appears sufficient to ensure <br />completion of reclamation. The operator is encouraged to continue his contemporaneous <br />reclamation efforts to result in minimal reclamation liability and required warranty. <br />No problems or possible violations were observed. <br />Responses to this inspection report should be directed to the Division of Reclamation, Mining and <br />Safety, 691 County Road 233, Suite A-2, Durango, Colorado 81301, Attn: Wally Erickson, phone <br />970-247-5469. Please note the change in address for the Division's office in Durango. <br />I & E Contact Address <br />NAME Steve Hankins <br />OPERATOR Hankins Stone Company, Inc. <br />STREET P.O. Box 164 <br />CITY/STATE/ZIP Dove Creek, CO 81324 <br />cc: Steve Shuey, DBMS <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />? WQCD (CH) <br />? OTHER