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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1976-027 <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 Craig Pit is approved for 19.9 acres permit area. Affected lands will be <br />reclaimed to support rangeland post-mining land use. The Division holds $94,693 financial warranty. <br />Four photos and an updated reclamation cost estimation totaling $104,810 accompany this report. <br />Affected lands were estimated at 15 acres. Reclamation materials were stockpiled along the west side of <br />the pit floor and above the highwall along the north and east permit boundary. Musk thistle was <br />established along the crest of the highwall. Maximum height of the highwall was visually estimated at 80 <br />feet. Safety fence was intact along the crest of the highwall. Western portions of the north and south <br />highwall approximated 2H:1V slope. According to the approved reclamation plan, all highwalls will be <br />reduced to 2H:1 V final slope by a combination of backfill and balanced cut and fill. Topsoil will be <br />replaced at approximately six inch depth. The reclamation seed mix and mulch will be applied to the 5.2 <br />acres of steep slope areas with hydro seeding and hydro mulching techniques. The 9.8 acre pit floor <br />area will be drill seeded. <br />Notice to Increase the Financial Warranty <br />Pursuant to Rule 4.2.1, the Division has reviewed the current cost of reclamation at $104,810. Please <br />find enclosed 22 pages of summary, work sheets and data sheets utilized by the Division to estimate the <br />cost of reclamation. Therefore, the existing $94,693 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 26, 2008, to increase the existing $94,693 financial warranty by $10,117 <br />to ensure a total financial warranty of not less than $104,810, or complete portions of the reclamation <br />plan as 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 <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 />cc: Steve Shuey, DRMS <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />? WQCD (CH) <br />? OTHER