2009-07-28_INSPECTION - M1984043 (2)

Home Browse Search

(Page 2) MINE ID # OR PROSPECTING ID # M-1984-043 INSPECTION DATE 07/17/2009 OBSERVATIONS INSPECTOR'S INITIALS PSH The Jesse Lee site, File No. M-1984-043, was inspected by Peter Hays with the Division of Reclamation, Mining and Safety (Division) in response to a routine file review which indicated the financial warranty for the 110c to 112c permit conversion (CN-01) had not been submitted within one year of the conversion approval as required Rule 4.1(2). A representative from Pelino, Inc. was not on site during the inspection. The Division contacted Scott Pelino on July 9, 2009 to arrange an inspection of the site and discuss the bond calculation for the conversion dated January 29, 2007. Mr. Pelino did not respond to the request to inspect the site. During the inspection, a mechanic working on the processing plant informed the Division that Scott Pelino has been on vacation. The Jesse Lee site is located 3 miles south of Buena Vista in Chaffee County, Colorado. The original 110c permit for the site was issued on July 24, 1984 for 9.8 acres of disturbance. On February 6, 2006, the Division approved the Succession of Operator and Transfer of Reclamation Permit (SO-02) from Kerr & Sons Trucking to Pelino, Inc. During the Division's previous inspection on May 19, 2006, conducted in response to a citizen complaint, it was noted the operator was mining outside of the approved permit boundary. On July 12, 2006, the Mined Land Reclamation Board (Board) considered a possible notice of violation, cease and desist order, corrective actions and civil penalties for mining without a permit. The Board found the Operator in violation of Section 34-32.5-109(1) of the Colorado Land Reclamation Act for the Extraction of Construction Materials. The Board issued a cease and desist order prohibiting further mining activities outside of the approved permit boundaries until the entire site was properly permitted. The Board ordered the Operator to obtain approval of a Section 112(c) Reclamation Permit for the entire operation within 160 days of the signature date of the Board Order, August 16, 2006. The Board ordered the Operator to pay civil penalties in the amount of $56,132.80 with all but $3,132.80 of the civil penalty suspended if the Operator completed the corrective actions in a timely manner. The unsuspended civil penalty was paid by the Operator on September 1, 2006. The operator submitted the required conversion application (CN-01) on September 11, 2006 to address the disturbed areas outside the permit area and add new acreage for future mining development. The operator proposed to add 6.6 acres to the permit for total permit acreage of 16.4. As a result of the conversion application, the Division recalculated the financial warranty for the site at.$52,000. On January 29, 2007, the Division approved the conversion application, informed Pelino, Inc. of the financial warranty increase of $36,000 and stated the conversion would not be final until the Bond was approved by the Division. During a file review by the Division in March 2009, the Division determined the financial warranty for the Jesse Lee site 110c to 112c conversion application (CN-01) had not been submitted by the operator. Division staff met with Scott Pelino on April 8, 2009 to discuss the issue. Mr. Pelino stated he would investigate the financial warranty status for the site. Division staff and Mr. Pelino exchanged phone calls and voicemails over the following weeks regarding the financial warranty. On May 22, 2009, Mr. Pelino called to inform the Division the bond would be posted the following week. The Division did not receive the bond for the site. On June 11, 2009, the Division faxed a copy of the conversion approval letter and a copy of the Division's estimate to reclaim the site based on the information in the Conversion Application per a request from Pelino, Inc.