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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1976-059 <br />INSPECTION DATE 8/28/08 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of the Division's monitoring program of permitted operations and as <br />follow-up to transfer of permit and succession of operator (SO-01), ),approved on June 13, 2008. Under <br />SO-01 the permit was transferred from Nielsons Skanska, Inc., to Skanska USA Civil West Rocky <br />Mountain District, Inc. The Cortez Sandstone Pit is approved for 36.4 acres permit area. Affected lands <br />will be reclaimed to support industrial post-mining land use, for storage of highway construction <br />equipment and supplies. The Division holds $15,985 financial warranty. An updated reclamation cost. <br />estimation totaling $18,838 accompanies this report. <br />As described in permit documents, the pit daylights to the south and west with the highwall advancing to <br />the north. The 40 foot high highwall is interrupted by a bench. The slope of the highwall above and <br />below the bench range from near-vertical to 1 H:1 V. Highway construction equipment and supplies were <br />stored on the pit floor and on the bench. Affected lands were visually estimated at 14 acres. <br />Notice to Increase the Financial Warranty, <br />Pursuant to Rule 4.2.1, the Division has reviewed the current cost of reclamation at $18,838. Please find <br />enclosed 12 pages of summary, work sheets and data sheets utilized by the Division to estimate the cost <br />of reclamation. Therefore, the existing $15,985 financial warranty appears insufficient to ensure <br />reclamation. Pursuant to Rule 4.2.1(2), the operator has 60 days from the signature date of this <br />inspection report, by December 23, 2008, to increase the existing $15,985 financial warranty by $2,853 to <br />ensure a total financial warranty of not less than $18,838, or complete portions of the reclamation plan as <br />necessary to ensure the adequacy of the existing warranty. <br />Response to this inspection report should be directed to the Division's office in Durango at 691 County <br />Road 233, Suite A-2, Durango, CO 81301, to the attention of Wally Erickson, phone (970) 247-5469. <br />Please note the change of address for the Division's office in Durango. <br />I & E Contact Address cc: Steve Shuey, DRMS <br />NAME Craig Wickstrom <br />OPERATOR Skanska USA Civil West Rocky Mtn District <br />STREET P.O. Box 1660 <br />CITY/STATE/ZIP Cortez. CO 81321 <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />? WQCD (CH) <br />? OTHER