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(Page 2) <br />MINE ID # OR PROSPECTING ID #: U-1981-287 <br />INSPECTION DATE: Z./.98409 INSPECTOR=S INITIALS: MAC- <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Nikolaus Arnusch, the owner/operator was also present for the inspection. The Arnusch Grav Pit 3 is <br />located approximately 6 miles southeast of Keenesburg, Colorado. The site is permitted for 9.8 acres. <br />Mining at the Arnush Grav Pit 3 is taking place in the creek bed of Lost Creek. The Lost Creek is an ephemeral <br />stream and was not flowing at the time of the inspection. The permit sign was not posted at the entrance to the <br />mine site. Rule 3.1.12(1) states that permit sign shall be posted at the entrance of the mine site; please see Page <br />3 of this report for the required corrective action. No mining was taking place at the time of the inspection. The <br />creek bed has self reclaimed and is covered with native vegetation. One disturbed area exists near the north end <br />of the pit; the disturbance is minimal and only requires light grading in order to be reclaimed. <br />A gully has formed recently along the west bank of the Lost Creek, near the disturbed area. The gully formed as <br />surface runoff from recent rains flowed across a fallow field that lies to the west of the creek. The gully is <br />approximately 12 feet long and 4-5 feet wide. Rule 3.1.6 states that all surface areas of the affected land shall be <br />stabilized and protected so as to effectively control erosion. The gully has been cited as a problem and will <br />require corrective action by the Operator; please see Page 3 of this report for the required corrective action. <br />The Division currently holds a bond in the amount of $5,000.00, which was determined to be sufficient to <br />complete reclamation. <br />This concluded the inspection. <br />I & E Contact Address <br />NAME: Nikolaus Arnusch <br />OPERATOR: <br />STREET: 34597 WC'R A <br />CITY/STATE/ZIP: Keeneshurg, C Q ROA43