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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1997-06A <br />INSPECTION DATE: /,-I i n/n9 INSPECTORS INITIALS: R_ <br />OBSERVATIONS <br />The Division conducted a pre-operational inspection of PERMIT # M-1997-064 on 10/6/09. <br />Present during the per-operational inspection of the site were Ms.Angela Belantoni the <br />consultant who prepared the conversion application and Mr. Terry Tew, Mining Manager GCC. <br />The site is being converted from a 100 covering 9.73 acres to 559.22 acres with the <br />addition of 549.49 acres. <br />GCC Rio Grande succeeded the permit on 3/4/09. The old affected area of the 110 permit <br />and associated affected areas will be reclaimed by GCC, and will be utilized as top soil <br />storage area. From the survey markers the old 110 permit appeared to be outside of the <br />permitted area. Since GCC is now going to expand the affected area in phases and plans to <br />reclaim the site as discussed on site and use the old affected area as top soil storage <br />site. <br />The operator and consultant explained the plan of operation once the site is permitted, <br />which includes four phases. The total affected area throughout the life of the mine will <br />be 104.38. Since the State Land Board owns the land GCC was required to lease the entire <br />559 parcel. The operator, might amend the total affected area through the life of the <br />mine prior to the approval of the conversion application, in order to avoid future <br />submittals of amendment to increase the affected area. Based on the estimate of mining <br />GCC does not plan to move that much material according to Mr. Tew. However, since no one <br />can forecast the future and since the permit lease area is 559 acres, it was suggested to <br />increase the affected area to more than what is being proposed. Just because the operator <br />increase the affected area does not mean they are liable for it. The operator will only <br />be required to post warranty for the acres that will be affected at any given time. <br />The entire acres to be included in the conversion application were driven and inspected. <br />The operator and consultant explained and pointed out the proposed mining plan and where <br />they will start mining. The site was as described in the proposed conversion application. <br />Operator and consultant also explained the conditions of the approval use by special <br />review permit from which is not enforceable by DBMS. <br />I & E Contact Address <br />NAME: Ms. ANGELO BELANTONI <br />OPERATOR: Environmental Aleternatives INC. <br />STREET: 1 107 MAIN STRFFT <br />CITY/STATE/ZIP: CANON CITY CO 81919 <br />cc: F CE <br />F BL <br />F FS, <br />F HW <br />F HMWMD (CH) <br />F <br />F SE <br />F WQCD (CH) <br />F OTHER