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(Page 3) <br />MINE ID # OR PROSPECTING ID #: M-1985-008 <br />INSPECTION DATE: 10/23/08 <br />INSPECTOR'S KAP <br />The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this <br />inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible <br />violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation <br />Board. The inspector noted on the previous page should be notified of all corrective actions taken. <br />PROBLEMS/POSSIBLE VIOLATIONS <br />AND <br />CORRECTIVE ACTIONS <br />CORRECTION <br />DATE <br />1 During the file review conducted as part of the inspection it was discovered that the 12/ 30/ 08 <br />operator is not in compliance with the Office of the State Engineer for the presence of <br />exposed groundwater in the ponds. This is a problem related to 34-32.5-116(4)(h) of the <br />Colorado Revised Statutes and Rule 3.1.6(1) of the Construction Materials Rules and <br />Regulations for failure to comply with applicable Colorado Water laws and regulations <br />governing injury to existing water rights and failure to minimize impacts to the hydrologic balance; as <br />well as a problem related to C.R.S. 34-32.5-116 (4) (i) for failure to follow the reclamation plan <br />prescribed in the permit. <br />PB or PV: PB <br />TOPIC(S): <br />Corrective Action: Either fill the pit to at least two feet about the groundwater surface or demonstrate RS AR <br />that the operation is in compliance with the Office of the State Engineer within thirty (30) days of <br />receipt of this inspection report. If the pond is to remain onsite, submit an amendment to the <br />application indicating a change in the post-mining land use, also within thirty (30) days of <br />receipt of this inspection report. <br />2 Durinq this inspection it was discovered that there is not adequate vegetative cover on 6 /30/09 <br />the topsoil stockpile This is a problem related Section 3.1.9 (1) of the Construction Materials <br />Rules and Regulations for failure to employ vegetative cover or other means to protect <br />topsoil from erosion keep it free of any contamination by toxic or acid-forming material, <br />and maintain it in a useable condition for reclamation. <br />PB or PV: PB <br />TOPIC(S): <br />Corrective Action: seed the topsoil with vegetative cover during the next appropriate seeding time for <br />your area prior to June 2009 and send the seed receipts to the Division for verification.