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(Page 2) <br />MINE ID # OR PROSPECTING ID #: m-9nnn-i 5A_ <br />INSPECTION DATE: 1 1 /s/n9 INSPECTOR=S INITIALS: MAC <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Ken Coulson of Coulson Excavating Company was also present for the inspection. The Bonser Pit is <br />located 2.5 miles east of Loveland, Colorado in Larimer County. The site is permitted for 90 acres. <br />This inspection was conducted in response to a complaint received by the Division on October 8, 2009. The <br />complaint letter stated the Operator had constructed a berm in the northeast corner of the permitted area. The <br />complainant was concerned that the berm may not have been included in the Mining and Reclamation Plans. In <br />addition, the complainant was concerned that a part or all of the berm may not be within the permit boundary. <br />According to Mr. Coulson, the berm was constructed in November of 2008 to act as a barrier between the <br />residential property to the north and the mine site. The Operator was required to construct the berm as a <br />condition of approval of Larimer County's Use by Special Review permit. The berm is stable and has been <br />vegetated with grasses and trees; an irrigation system has been installed on the berm. <br />A review of the Division's records shows that the site is permitted for 90 acres, with an affected area of 65 <br />acres. Mr. Coulson disputed the Division's records and contended the affected area should correlate to the 90 <br />acre permit boundary. The Reclamation and Mining Plan Maps depicted only a 90 acre permit area and did not <br />show an affected area of 60 acres. Furthermore, the Mining Plan Map and the 2009 annual map showed the <br />permit boundary in different locations. Neither the permit boundary nor the affected area was delineated by <br />monuments or other markers. The lack of boundary markers has been cited as a problem and will require <br />corrective action by the Operator, please see Page 3 of this report for the required corrective actions. Due to the <br />lack of boundary markers and discrepancies between the maps, a determination could not be made as to whether <br />the berm was located within the permit boundary. A follow up inspection will be scheduled once the permit <br />boundary is determined and delineated. <br />This concluded the inspection. <br />I & E Contact Address <br />NAME: Ken Coulson <br />OPERATOR: _Coulson Excavating Company. Inc. <br />STREET: 3609 N_ County Road 13 <br />CITY/STATE/ZIP: I c)vPlond CCU 80538