2009-05-11_INSPECTION - M1990025

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(Page 2) MINE ID # OR PROSPECTING ID # M-1990-025 INSPECTION DATE 4/10/09 INSPECTOR'S INITIALS WHE OBSERVATIONS This inspection occurred as part of the Division's review process of a request for reduction in financial warranty and reduction in permit acreage (SR-01). The Division received SR-01 on November 27, 2008. The Division extended SR-01 due to weather, per the conditions of Rule 4.17.2(2). The permit area for the Hay Camp Pit includes 420.9 acres. Affected lands will be reclaimed to support pastureland post-mining land use. The Division holds $168,615 financial warranty. Two photos and a reclamation cost estimation totaling $142,031 accompany this report. Under SR-01, the Operator originally requested full release of 51.6 acres for completion of reclamation on 33.1 acres and release of 18.5 acres which was included in the permit boundary but not affected by mining activities. On April 18, 2009 the Operator modified SR-01 to retain seven acres of the originally requested 51.6 acres, reducing the release of acreage to 44.6 acres. Under SR-01, the Operator described the current affected area at 68.3 acres, which includes 17.7 acres of active mining and 50.6 acres of affected lands in various stages of reclamation. The condition of permitted lands appeared consistent with the descriptions provided in SR-01 and in the most recently submitted annual report. Mining and reclamation operations were active.. The Operator is reclaiming contemporaneously as the mining activity advances. The mining activity is advancing westward along a north facing slope, resulting in a relatively flat bench which daylights to the north. The south highwall is reduced to slopes no steeper than 3H:1V, which transition smoothly with the natural upland topography. BackfiIled and graded areas requested for release under SR-01 appeared stable, no evidence of settling, slumping or excessive erosion were observed. Vegetative cover for areas requested for release under SR-01 was well established and at least equal in extent of cover to the surrounding undisturbed lands. Evidence of Elk grazing the reclamation vegetation was observed. Observations made during the inspection and recorded in this report indicate that the Operator has successfully completed reclamation on the 33.1 acres affected lands addressed under SR-01 in accordance with the approved Reclamation Plan and Act and Rules. The 11.5 acres of undisturbed lands, also requested for release under SR-01, are appropriate for release because they have not been affected by the mining operation. The Act and Rules require reclamation only for affected lands. On May 11, 2009, the Division approved the release of 44.6 acres from the permit area. Division records indicate that with the approval of SR-01 the permit area is reduced from 420.9 acres to 376.3 acres. As noted above, the Division has updated the cost of reclamation totaling $142,031. Please find enclosed 20 pages of summary, worksheets and data sheets utilized by the Division to estimate the cost of reclamation. The reclamation cost estimation is based on the conditions of the approved Reclamation Plan, information provided under SR-01 and observations made by the Division during the inspection. Therefore, under SR-01 the Division has approved a $26,584 reduction of financial warranty, from $168,615 to $142,031. Please provide a replacement financial warranty not less than $142,031. Please be aware that annual reports always require a map of current site conditions, regardless of whether any disturbance has occurred during the report year. Response to this inspection report should be directed to the Division's office in Durango at 691 County Road 233, Suite A-2, Durango, CO 81301, to the attention of Wally Erickson, phone (970) 247-5469. Please note the change of address for the Division's office in Durango. I & E Contact Address cc: Steve Shuey, DRMS ? CE NAME Kathy Stone ? BL OPERATOR Four States Aggregates ? FS STREET P.O. Box 1568 ? HW CITY/STATE/ZIP Cortez, CO 81321-1568 ? HMWMD (CH) ? SE