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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1999-058 <br />INSPECTION DATE: 8-3-09 INSPECTOR'S INITIALS GRM <br />OBSERVATIONS <br />This inspection was follow up to the Colorado Division of Reclamation, Mining and Safety inspection of May 26, <br />2009. Colorado Stone the operator of the Yule Quarry is under notice for a possible violation (NOV) for failure to <br />protect the hydrological balance and disturbing lands outside the approved affected area. The purpose of the <br />inspection is to note current conditions and efforts made to correct the noted possible NOVs. <br />Notice of Violation #1: Failure to protect the hydrological balance. <br />The inspector notes that some temporary efforts appear to have stopped sedimentation from leaving the permitted <br />site. Marble slurry dumping at the original dump area has ceased and been moved to an upper bench well within the <br />permit boundaries. Evaporation appears to be the main method for water extraction of the slurry. The move has <br />prevented slurry from being pushed over dump crests into the primary drainage. A temporary sedimentation <br />structure has been erected within the permit boundaries to prevent slurry excursions off site. While the structure <br />appears to be doing an adequate job under current conditions, it should be noted that it is temporary and has not been <br />reviewed by DRMS engineers and staff. The sedimentation pond at the entrance to the quarry is noted as being <br />cleaned out and holding some water. Originally it was filled to capacity with sedimentation and water was running <br />across the road and off the permitted area. At the time no water was being discharged from the quarry at the <br />compliance point so water quality could not be assessed. While other areas of past impact were noted no further <br />impacts to the hydrological balance were observed. <br />Notice of Violation #2: Failure to protect areas outside the affect area. <br />As noted above sedimentation leaving the permitted area appears to have been abated. The operator has not been <br />able to abate sedimentation off site due to access issues with Gunnison County and the adjacent landowners. <br />Colorado Stone has placed hay bales and waddles on a steep slope below the point where sediment was being <br />pushed over the edge as noted in both 2007 and again in 2009. The temporary structures are at the permit boundary <br />and preventing any further sedimentation from migrating down slope. A large stone block has been placed at the <br />push off point where the missing barrier was noted in 2007 and 2009. Signage has been placed in this area noting <br />dumping is strictly prohibited. The area below this will be included in an amendment currently being developed to <br />address this and the lower storage area issues. At the lower storage area it is noted that approximately a quarter acre <br />of the half acre site will be included in the amendment to the 110c permit. This will bring the total affected acreage <br />to 9.9 acres. Sold stone is intermixed with unsold blocks. Colorado Stone needs to begin to sort them out so that <br />the unsold rock can be stored in the designated area. This process can and should be implemented as soon as <br />possible. At this time no further damage to areas outside the affect area are noted. <br />Final required corrective actions for the possible NOVs are pending before the Board.