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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1980-003 <br />INSPECTION DATE 08/06/09 INSPECTOR'S INITIALS PSH <br />OBSERVATIONS <br />The McNulty Cinder Pit, File No. M-1980-003, was inspected by Peter Hays with the Division of Reclamation, <br />Mining and Safety (Division) as part of the Division's monitoring inspection program. Mr. Justin Helmer with <br />Zen Excavation and Mrs. Sarah McNulty with Quarter Circle 8 were present during the inspection. <br />The McNulty Cinder Pit is located approximately 17 % miles south and east of Glenwood Springs, Colorado in <br />Eagle County. The site was previously inspected by the Division on December 12, 2003. <br />The McNulty Cinder Pit is permitted for 9.6 acres of disturbance. An area of pre-law disturbance is located <br />south of the permitted site. According to the 2008 annual report, approximately 150 cubic yards of material <br />was sold from the pit and no additional excavation or disturbance of the remaining resource occurred during <br />the year. <br />During the inspection, a screening plant, excavator and stockpiled material were observed. Evidence of weed <br />control for Canadian Thistle was observed during the inspection. A few patches of common mullein were <br />identified during the inspection and Mr. Helmer stated they would be control. No fuel was stored at the site. <br />The site was surveyed two weeks ago according to Mr. Helmer. The survey permit corner and boundary line <br />stacks and flagging were observed during the inspection. The current mining disturbance is very close to the <br />western and northern permit boundaries. The site appeared stable and no evidence of erosion was noted <br />during the inspection. Reclamation activities have not started at the site. <br />Zen Excavation is in negotiations with Quarter Circle 8 to either lease or transfer the 110c reclamation permit. <br />The Permit Transfer and Succession of Operators process was discussed during the inspection with Zen <br />Excavation. <br />The Division currently holds a financial warranty of $19,146. Based on this inspection, the financial warranty <br />is not sufficient to perform the approved reclamation at the site. The Division prepared a reclamation cost <br />estimate for the McNulty Cinder Pit based on this inspection. The Division estimates the cost to reclaim the <br />current disturbance is $23,000. A copy of the estimate will be sent under separate cover. <br />An entrance sign was posted and permit boundary markers were observed as required by Rule 3.1.12. No <br />problems were noted during the inspection. <br />I & E Contact Address <br />NAME Sarah McNulty <br />OPERATOR Quarter Circle 8 LLLP <br />STREET 7747 County Road 100 <br />CITY/STATE/ZIP Carbondale, Colorado 81623 <br />cc: <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />X Justin Helmer; Zen Excavation <br />X Steve Shuey; DRMS