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. <br />(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2008-010 <br />INSPECTION DATE 4/10/09 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of the Division's review process of a request for re-evaluation of the cost <br />of reclamation, submitted on behalf of the Permittee by Nathan Barton. <br />On June 11, 2008, the Division approved the application for the Mud Creek Pit. The application <br />describes a permit area of 154.4 acres with approximately 105 acres affected lands. Affected lands will <br />be reclaimed to support cropland, rangeland and pastureland post-mining land uses. On June 17, 2008, <br />the Division completed a preliminary reclamation cost estimation totaling $114,864 and forwarded the <br />cost estimation to the Permittee. On February 25, 2009, the Permittee, through a document drafted by <br />Mr. Barton and dated February 23, 2009, requested the Division to re-evaluate its preliminary cost <br />estimation. The Division reviewed its preliminary cost estimation and based upon conditions of the <br />approved permit, new information provided by Mr. Barton, and Rule 4.2.1(4), calculated the cost of <br />reclamation totaling $51,293. The new reclamation cost estimation, with explanation for the apparent <br />discrepancy between the two estimates, was forwarded to the Permittee on April 22, 2009. <br />As previously noted, the permit was approved on June 11, 2008. Pursuant to Rule 4.1(2), if the Division <br />has not received the appropriately executed financial and performance warranties within one calendar <br />year, by June 11, 2009, the Board shall reconsider the previous permit approval. Prior to the <br />reconsideration hearing, the notification and comment provisions of Rule 1.6 shall apply. <br />As of the day of this inspection mining activities had not commenced. Conditions of the permit area <br />appeared consistent with the descriptions provided in the application documents. Therefore, the <br />proposed operation appears compliant with the conditions of the approved permit and Act and Rules. No <br />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 Darin Stone <br />OPERATOR McStone Aggregates, LLC <br />STREET P.O. Box 483 <br />CITY/STATE/ZIP Cortez, CO 81321-0483 <br />cc: Steve Shuey, DRMS <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />? WQCD (CH) <br />? OTHER