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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1982-033 <br />INSPECTION DATE 3/31/09 <br />INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of the Division review process for an application to transfer the permit from Malouff <br />Construction to Absmeier Landscaping and Construction (SO-01). The Malouff Pit is approved for 90 acres <br />affected lands. Affected lands will be reclaimed to support general agriculture post-mining land use. The Division <br />holds $1,714 financial warranty. The appropriate amount of financial warranty for this site is $4,035. <br />Based on observations recorded during the September 26, 2007 site inspection, on January 22, 2008 the Division <br />estimated the cost of reclamation at $4,035. On February 5, 2008, the Division provided notice to increase the <br />financial warranty from $1,714 to $4,035. The increase in financial warranty was not received by the 60-day <br />deadline provided by Rule 4.2.1(2) and the Division scheduled the matter for consideration by the Mined Land <br />Reclamation Board for possible violation. The Board considered the issue during a January 7, 2009 hearing and <br />found Malouff Construction in violation of Sections 34-32.5-117(4)(b)(1), for failure to maintain sufficient financial <br />warranty to assure the completion of reclamation, and 34-32.5-117(4)(c)(II), C.R.S., for failure to submit a financial <br />warranty within 60 days of the adjustment. The Board assessed a civil penalty of $4,139.84 and ordered Malouff <br />Construction to provide the $4,035 financial warranty and civil penalty by February 22, 2009. Division records do <br />not indicate that Malouff Construction has submitted the $4,139.84 civil penalty or posted the increased financial. <br />warranty in the amount of $4,035. Copy of the Board's Order is enclosed. <br />On March 13, 2009, Absmeier submitted an application to transfer the permit and become successor operator. <br />Prior to approving the transfer of permit, the Division must receive appropriately executed financial and performance <br />warranties. During this March 31, 2009 site inspection, the condition of the site appeared similar to those observed <br />during the September 26, 2007 inspection. Therefore, the Division has determined the reclamation cost estimation <br />totaling $4,035 to be current for the purposes of SO-01. Should Absmeier desire to become the operator of the <br />permit, M-1982-033, please submit financial warranty in the amount of $4,035, and an appropriately executed <br />performance warranty. Once the Division has fully approved the performance and financial warranties the permit <br />transfer may be approved. <br />The existing reclamation plan indicates that the pit floor will be stabilized with gravel surface but does not address <br />how the operator will stabilize the 3H:1 V slopes. Therefore, the Division strongly encourages the operator to revise <br />the reclamation plan to address stabilization of the 3H:1 V slopes. Due to the difficult soil and climate conditions of <br />this site, the Division recommends the operator consider stabilizing the 3H:1V slopes with shrubs and grasses. <br />Please be aware that annual reports always require a map of current site conditions, regardless of whether any <br />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 Road 233, <br />Suite A-2, Durango, CO 81301, to the attention of Wally Erickson, phone (970) 247-5469. <br />I & E Contact Address <br />NAME Stephen Malouff <br />OPERATOR Malouff Construction <br />STREET 16565 Hwy 550 <br />CITY/STATE/ZIP Aztec. NM 87410 <br />cc: Steve Shuey, DRMS <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />X Adrian A. Absmeier <br />Absmeier Landscaping & Construction <br />P.O. Box 1134 <br />5868 South CR 106 <br />Alamosa, CO 81101