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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1981-153 <br />INSPECTION DATE 3/4/09 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of the Division's monitoring of permitted operations. The Operator was <br />informed of the inspection but declined to participate due to conflict with a previously scheduled <br />appointment. The Southway Pit is approved for 20 acres affected lands for the excavation and <br />processing of construction materials. Affected lands will be reclaimed to support wildlife habitat post- <br />mining land use. The Division holds $56,500 financial warranty. Two photos and an updated <br />reclamation cost estimation totaling, $52,358 accompanies this report. <br />Mining and reclamation activities were dormant during the inspection. Mine identification sign and permit <br />boundary markers were posted. Public access to the site is controlled by locked gate and fence. <br />Conditions of the permit area appeared consistent with the descriptions provided in permit documents <br />and the 2008 annual report. The pit area exhibited internal drainage. Various stockpiles of mined <br />materials occupied the pit floor. Reclamation materials were stockpiled along the south crest of the <br />highwall. Highwalls ranged from 10 feet to 20 feet high and approximated 1H:1V slopes (visual <br />estimates). The presence of regulated noxious weeds was not observed. <br />The Division has reviewed the current cost of reclamation totaling $52,358. Please find enclosed 13 <br />pages of summary, work sheets and data sheets utilized by the Division to estimate the cost of <br />reclamation. Therefore, the existing $56,500 financial, warranty appears sufficient to ensure the <br />completion of reclamation. <br />No problems or possible violations were observed. <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 />Please note the change of address for the Division's office in Durango. <br />I & E Contact Address <br />NAME Ralph Martinez <br />OPERATOR Southway Construction Company, Inc. <br />STREET 117 White Pine Drive <br />CITY/STATE/ZIP Alamosa, CO 81101 <br />cc: Steve Shuey, DRMS <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />? WQCD (CH) <br />? OTHER