2009-06-06_INSPECTION - M2009023

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(Page 2) MINE ID # OR PROSPECTING ID # M-2009-023 INSPECTION DATE 5/15/09 OBSERVATIONS INSPECTOR'S INITIALS WHE This inspection occurred as part of the Colorado Division of Reclamation, Mining and Safety (the Division or DRMS) review process of an application to change the existing 111 type permit (M-1999-086) to a 112 type permit (M-2009-023). The conversion to the 112 permit will remove the sales restriction of the 111 permit and thereby allow the Operator to sell mined materials commercially. The 112 application addresses the same 25 acre area permitted to the 111 operation and the permit boundary will not be altered; no new affected lands will result from the change in type of permit. Four photos and a reclamation cost estimation totaling $90,746 accompany this report. As shown in the photos, a pond resulted from the 111 operation. The existing pond was estimated at five acres surface area. Permit records include a correspondence from the Division Engineer of Water Division 7, Division of Water Resources (DWR), dated January 3, 2002, which indicates the pond is compliant with Colorado water laws and regulations governing injury to existing water rights. In its April 3, 2009 response to the Division's notice of the. 112 application, DWR reiterated that the operation is compliant with Colorado water rights laws, clarified that future operations will not impact surface water rights, and recommended approval of the 112 application. Therefore, the existing operation and the activities proposed in the 112 application appear compliant with the requirements of Rule 3.1.6(1)(a). In response to objections to the 112 application, received from Mr. Harry Goff and the Southern Ute Indian Tribe, the Operator reiterated that additional ground water shall not be exposed. The pit will be dry-mined and dewatering of the pit will not be necessary. On-site material processing for the 112 operation will be limited to crushing and screening. Therefore, the operation will not discharge pit drainage or process water and a discharge permit will not be required for the 112 operation. On March 24, 2009, the Division provided notice to the Colorado Department of Public Health and Environment, Water Quality Control Division (WQCD), of the 112 application. The Division has not received response from the WQCD. NOTE: The original 111 operation mined below the water table and discharged pit drainage and process water. Therefore, a Colorado Discharge Permit System permit was required through the WQCD. As noted above, the 112 operation will not discharge pit drainage or process water. As shown in the photos, the existing pit area exhibits internal drainage. In the original 111 permit the Operator committed to construct stormwater detainment berms and/or silt fence to treat stormwater runoff for sediment prior to leaving the site. The Operator has clarified that such commitments to control stormwater also apply to the new 112 permit. Therefore, stormwater discharge from the site appears unlikely. However, in response to an objection to the 112 application from the Southern Ute Indian Tribe, the Operator has committed to obtaining a stormwater permit through the EPA.. In their objection to the 112 application, the Southern Ute Indian Tribe also indicated that US Army Corps of Engineers should be consulted regarding potential impacts to waters of the USA and wetland areas. On March 24, 2009, the Division provided notice to the US Army Corps of Engineers of the 112 application. The Division has not received response from the US Army Corps of Engineers. However, the US Army Corps of Engineers were involved with the original 111 application and the application was modified to address the requirements of the US Army Corps of Engineers. As noted above, the permit boundary for the 112 application is the same as the 111 operation and no new ground will be affected by the 112 operation. Therefore, the 112 application appears compliant with the requirements of the US