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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1981-119 <br />INSPECTION DATE: 6.130109 INSPECTOR=S INITIALS: -MAC <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Jim Miner of Builder's Aggregate, Inc. was also present for the inspection. The Builder's Aggr Pit is <br />located approximately 0.5 miles north of Fort Morgan, Colorado. <br />The permit sign was in place per the requirements of Rule 3.1.12. The site is situated on the South Platte River, <br />which cuts through the permit area from northwest to southeast. No mining was taking place at the time of the <br />inspection. The South Platte River was above the bankfull stage at the time of the inspection. The northwest and <br />southwest boundary markers could not be located due to the high water level of the South Platte River. The <br />permit file contains a discrepancy as to the size of the permit area. The permit application states that the permit <br />area is 39.33 acres in size; however, the Mining Plan and Reclamation Plan Maps along with the report of the <br />inspection conducted on October 20, 2006 states that the permit area is 80 acres in size. The actual size of the <br />permit area could not be confirmed during this inspection. <br />Extraction is currently taking place along the south side of the South Platte River from a dredge pond that is <br />approximately 5 acres in size. According to the Mining Plan, the dredge pond is not to exceed 1.5 acres in size. <br />The size of the dredge pond could not be calculated by GPS because the east side of the pond was inaccessible. <br />The south side of the dredge pond has been lined with concrete rubble that was brought in from offsite. A <br />review of the permit file found that the Operator has not certified that the material is inert and non-toxic per the <br />requirements of Rule 3.1.5(9). This has been cited as a problem; please refer to Page 3 of this report for the <br />required corrective action. According to Mr. Miner, the Environmental Protection Agency (EPA) has instructed <br />him to not dredge along the south side of the dredge pond due to the presence of hydrophytic vegetation; <br />dredging may continue along the north side of the dredge pond. The Division has not received any <br />correspondence from the EPA or the Army Corps of Engineers on this matter. <br />The Division holds a financial warranty in the amount of $11,750.00, which was based on reclaiming a 1.5 acre <br />dredge pond. Since the dredge pond appears to exceed 1.5 acres in size, the financial warranty will need to be <br />recalculated once the size of the dredge pond is determined. <br />Due to the site conditions at the time of the inspection, a follow up inspection will be conducted when the level <br />of the South Platte River returns to normal. The purpose of the follow up inspection will be to determine the <br />size of the permit area, to determine the size of the dredge pond, and to recalculate the financial warranty. <br />This concluded the inspection. <br />I & E Contact Address <br />NAME: Jim Miner <br />OPERATOR: Builder's Aggregate. Inc. <br />STREET: 915 West Beaver Ave- <br />CITY/STATE/ZIP: Fort Morgn, CCU 80701