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(Page 2) <br />MINE.ID # OR PROSPECTING ID # M-2005-065 <br />INSPECTION DATE 10/29/08 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of the Division's monitoring of permitted operations. The Upper Animas <br />Sand and Gravel permit is approved for 5.9 acres affected land. Affected lands will be reclaimed to <br />support developed water resource post-mining land use. The Division holds $7,618 financial warranty. <br />Mining activities appear to have affected approximately 40% of the permit area and commenced in the <br />south end of the permit area with the excavation of a settling pond. Depth of the excavation was <br />estimated at four feet. The excavation has exposed ground water. The operation is approved to expose <br />ground water through well permit 63417-F, issued by the Colorado Division of Water Resources. <br />Due to the approved post-mining land use this operation has the potential to generate topsoil quantities <br />in excess than required for reclamation purposes. Topsoil has been stockpiled on the east side of the <br />permit area as indicated on the maps submitted with TR-01. The topsoil stockpile exhibited steep slopes <br />and did not have a protective vegetative cover. Evidence of erosion or other degradation of the <br />stockpiled topsoil was not observed. However, pursuant to Rule 3.1.9(1), the Division requires the <br />Operator to establish a protective. vegetative cover for salvaged topsoil, stockpiled for reclamation <br />purposes, if such stockpile will remain for periods exceeding one year. Given the fact that the pit only <br />recently opened and the topsoil stockpile may not yet be one year old, the absence of a protective <br />vegetative cover is not cited as a problem at this time. The Division recommends slope reduction to <br />3H:1 V slope of the topsoil stockpile prior to seeding.. Please ensure that stockpiled topsoil, salvaged for <br />reclamation purposes, is protected in accordance with Rule 3.1.9. <br />The Division last reviewed the cost of reclamation, totaling $7,618, on February 28, 2006. Observations <br />made during the inspection and recorded in this report'indicate that current conditions of the permit area <br />are consistent with the assumptions made for the 2006 reclamation cost estimation. Therefore, the <br />Division has found the 2006 cost estimation to be current and the existing $7,618 financial warranty <br />appears sufficient to ensure completion of reclamation. <br />Please be aware that annual reports always require a map of current site conditions, regardless of <br />whether any disturbance has occurred during the report year. <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 />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />cc: Steve Shuey, DRMS <br />? CE <br />Jack Clark, Jr. ? BL <br />Jack Clark, Jr. ? FS <br />P.O. Box 767 ? HW <br />Silverton. CO 81433 ? HMWMD (CH) <br />? SE <br />? WQCD (CH) <br />0 OTHER