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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1976-020 <br />INSPECTION DATE 10/29/08 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS WHE <br />This inspection occurred as part of the Division's monitoring plan for permitted operations. The Thomas Pit is <br />approved for extraction of alluvial materials from a side channel along the west bank of the Animas River and from a <br />pit area located in the 100-year flood plain adjacent to the west bank. The permit is approved for 34.81 acres <br />affected land. The Division holds $26,295 financial warranty. Permit status is active. The current Operator, Four <br />Corners Materials, does not currently have an approved 404 permit from the US Army Corps of Engineers (COE) to <br />conduct in-stream mining activities. Therefore, in-stream mining activities are dormant. However, the Operator has <br />attained COE approval to install stream channel stabilization structures and to remove man-made obstructions to <br />the floodway located above the high water elevation. Four photos accompany this report. <br />As shown in the photos, significant quantities of sediment are deposited seasonally in the reach of riverwithin which <br />the permit area is located. Portions of the two V-weir structures installed by the Operator in 2007 in accordance <br />with the COE permit have been buried in sediment and/or raveled by high flows. In 2007 the Operator also <br />removed the man-made flood dike previously located between the main channel of the Animas River and the side <br />channel mining area. Sediment deposition in the side channel has occurred sufficient to return portions of the river, <br />even during low flow season, back to the main channel of the Animas River. Division records indicate that prior to <br />the permit, before 1976, the side channel had been excavated by a floating dredge. The dredged channel was <br />approximately 900 feet long, 200 feet wide and potentially 30 feet deep. The dredged channel formed a basin <br />adjacent to and deeper than the river channel and presumably captured a significant portion of the river flow. The <br />original mine plan allowed the operator to excavate sediment from the pre-permit dredge basin deposited <br />seasonally by the Animas River. Such mining activities occurred from 1976 to 1996. In 1996 a previous operator <br />did not renew the COE permit and in-stream excavation activity ceased. Division records indicate that excavation of <br />sediment from the side channel dredge basin has not occurred since 1996 and the basin has only recently refilled <br />sufficient to return the majority of the Animas River to its main channel. Since 1996 the previous and current <br />operators have maintained an active status by conducting mining activities in the flood plain areas adjacent to the <br />west bank. <br />Reclamation backfill and grading of the excavated pond, located at the south end of the permit area and approved <br />through AM-01, appeared to have been completed in accordance with the reclamation plan. The pond was <br />receiving water from irrigation ditches. The rock-lined open channel emergency spillway appeared intact and <br />stable; no evidence of discharge from the pond was observed. The jetty structure and double row of concrete <br />blocks installed along the west bank and adjacent to the pond appeared stable. However, establishment of the 360 <br />Willow shrubs and 75 Cottonwood trees for the embankment, as approved through AM-01, has not yet occurred. <br />Please be aware that annual reports always require a map of current site conditions, regardless of whether any <br />disturbance has occurred during the report year. <br />No problems or possible violations were observed. <br />Response to this inspection report should be directed to the Division's office in Durango at 691 County Road 233, <br />Suite A-2, Durango, CO 81301, to the attention of Wally Erickson, phone (970) 247-5469. <br />I & E Contact Address cc: Steve Shuey, DRMS <br />? CE <br />NAME Peter Kearl ? BL <br />OPERATOR Four Corners Materials ? FS <br />STREET P.O. Box 1969 ? HW <br />CITY/STATE/ZIP Bavfield, CO 81122 ? HMWMD (CH) <br />? SE <br />? WQCD (CH) ? OTHER