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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1998-019 <br />INSPECTION DATE: 05/22/06 INSPECTOR'S INITIALS: RMW <br />OBSERVATIONS <br />On April 18, 2006, the Division of Minerals and Geology (Division) received a written request from Lafarge West, Inc <br />for a release of Performance and Financial Warranties for the Parshall pit under their Construction Material Special <br />(111) Operation Reclamation Permit M-2005-024. This request was made because Grand Gravel converted permit <br />M-1998-019 for the Grand Gravel Pit from a Limited Impact (110) Permit to a Regular (112) Permit to include the <br />entire permit acreage under Lafarge's 111 permit, and assume reclamation responsibility for Lafarge's mining <br />activities under Grand Gravel's 112 permit. <br />Following the surety release inspection for the Parshall Pit, the remainder of the Grand Gravel Pit operated by <br />Grand Gravel was inspected. Present at the inspection was Richard Wenzel of the Division and Richard Curry of <br />Grand Gravel. This inspection report documents the findings of the inspection performed on the portion of the <br />Grand Gravel Pit operated by Grand Gravel prior to Lafarge's request for release of reclamation responsibility. For <br />results of the portion of the pit inspected for Lafarge's request for release of reclamation responsibility refer to the <br />report for the Parshall Pit, Permit No. M-2005-024 dated May 22, 2006. <br />The Grand Gravel Pit is located on the east side of Grand County Road (GCR) 2 approximately one mile northeast <br />of the intersection of U.S. Highway 40 and GCR 2, and sits atop a ridge that runs parallel to GCR 2. A sign was <br />posted at the entrance to the pit identifying the site as the Grand Gravel Pit, Permit No. M-1998-019. The permit <br />boundaries for the pit were clearly marked by fences along the south and east sides of the site and steel posts <br />along the north and west sides of the site. All mining activity' has occurred within the pit boundaries. No active <br />mining was in progress at the time of this inspection. However, numerous pieces of mining equipment and other <br />miscellaneous, non-mining equipment were observed in the pit, including three large, empty, cylindrical tanks. A <br />diesel fuel storage tank was also observed in the pit. The tank appeared to have secondary containment at one <br />time consisting of a plastic liner and a berm. However, the berm appears to have eroded away, essentially <br />minimizing any secondary containment. The operator indicated however, that the tank was empty. Before the tank <br />is used for fuel storage, adequate and properly sized secondary containment must be in place. A moderately <br />vegetated topsoil berm was observed along the west side of the pit. It appeared to be stable. A large, unvegetated <br />topsoil stockpile was observed at the south end of the existing pit. Several stockpiles of processed gravel were <br />observed along the east and south sides of the pit. Highwalls were observed along the north, east, and west sides <br />of the pit. They varied in height from approximately ten to twelve feet. A large pile of recycled asphalt was <br />observed in the northeast corner of the pit. No ground water or significant erosion was observed in the pit. <br />Based on the results of this inspection, the only problem noted was the unvegetated topsoil stockpile at the south <br />end of the current mining operation. This problem and corrective actions are detailed on Page 3 of this report. <br />Because Grand Gravel is assuming the reclamation responsibility for Lafarge's 111 permit under their 112 permit, a <br />new bond calculation will be required. The results of the bond recalculation will be forthcoming under separate <br />cover. <br />Responses to this inspection report should be directed to Richard Wenzel at the Division of Minerals and Geology, <br />Denver Office, 1313 Sherman Street, Room 215, Denver, Colorado 80203, phone number 303-866-4935. <br />Enforcement and Inspection Contact Address <br />NAME: Richard Curry <br />OPERATOR: Grand Gravel <br />STREET: P.O. Box 566 <br />CITY/STATE/ZIP: Hotchkiss CO 81419 <br />PC: <br />U.S. Army Corps of Engineers CO Hazardous Materials and Waste Division <br />U.S. Bureau of Land Management CO State Engineers Office <br />U.S. Forest Service CO Water Quality Control Division <br />CO Department of Transportation OTHER: