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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1991-133 <br />INSPECTION DATE 3/31/09 <br />INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred in response to request from the Operator to evaluate progress towards <br />completing portions of the reclamation plan and to update the cost of reclamation accordingly. The <br />Valdez Gravel Pit is approved for 29.96 acres affected lands. Affected lands will be reclaimed to support <br />rangeland post-mining land use. The Division holds $16,465.41 financial warranty. Four photos and an <br />updated reclamation cost estimation totaling $15,339 accompany this report. <br />Operations were dormant during the inspection. As shown in the photos, the west pit slopes appear to <br />have been reclaimed, the east and south pit slopes approximate 3HIV, and portions of the north pit <br />slopes approach 2H:1 V. Highwalls were visually estimated at 15 feet. The pit area exhibited internal <br />drainage. Various stockpiles of mined materials occupied the pit floor. The excavation activity has <br />encountered a clay deposit, evident along the east side of the pit. The Operator utilizes the clay and <br />crusher fines to produce adobe bricks for commercial sales. Numerous pallets of adobe bricks were <br />located adjacent to the permit boundary. The permit boundary includes pre-permit excavations located in <br />the northeast portions of the permit area. Eventually, these pre-permit disturbances will be incorporated <br />into the affected lands as the mining activity advances. Affected lands were estimated at 10 acres. <br />As noted above, the Division has reviewed the current cost of reclamation totaling $15,339. Please find <br />enclosed 13 pages of summary, work sheets and data sheets utilized by the Division to estimate the cost <br />of reclamation. Therefore, the existing $16,465.41 financial warranty appears sufficient to ensure the <br />completion of reclamation. Please disregard the Division's previous notices to increase the financial <br />warranty, dated January 5, 2007 and September 30, 2007. <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 Demetrio Valdez <br />OPERATOR Valle Escondido <br />STREET P.O. Box 84 <br />CITY/STATE/ZIP Coneios, CO 81129 <br />cc: Steve Shuey, DRMS <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />? WQCD (CH) <br />? OTHER