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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-9nno--1.5A <br />INSPECTION DATE: 11111 1x/09 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 and Peter Wayland of Weiland, Inc. were also <br />present for the inspection. The Bonser Pit is located 2.5 miles east of Loveland, Colorado in Larimer County. <br />The site is permitted for 90 acres. <br />This inspection was conducted as a follow up to the inspection on November 5, 2009. The previous inspection <br />was conducted in response to a complaint received by the Division on October 8, 2009. The complaint letter <br />stated the Operator had constructed a berm in the northeast corner of the permitted area. The complainant was <br />concerned that the berm may not have been included in the Mining and Reclamation Plans. In addition, the <br />complainant was concerned that a part or all of the berm may not be within the permit boundary. <br />The Division's records indicate the site is permitted for 90 acres with an affected area of 65 acres. A review of <br />the permit file found that the affected area should correlate to the permit boundary, resulting in an affected area <br />of 90 acres. During the previous inspection the lack of a permit boundary was cited as a problem. The Operator <br />had not yet delineated the permit boundary since it was unclear whether the affected area should be delineated at <br />65 acres or 90 acres. Since the permit boundary and the affected area are the same, the monuments should <br />delineate a 90 acre area as it is depicted on the Mining Plan Map. <br />The Division was able to determine the location of the permit boundary using a revised Mining Plan map that <br />was submitted with Technical Revision - 01 on August 11, 2004. The Mining Plan map shows the permit <br />boundary is located 90 ft. south of the property line; the property boundary is delineated by a fence in the area <br />where the berm is located. The property boundary and the berm were surveyed using a Trimble GeoXT GPS <br />unit; the data was downloaded into GPS Pathfinder Office 3.10. The berm is 1,060 ft in length, 100-145 ft. in <br />width, and 23 ft. in height. Using the data collected in the field, it was determined that the north toe of the berm <br />is located 50 ft. south of the property boundary at its closest point. Therefore, the berm lies outside of the permit <br />boundary by approximately 40 ft. <br />Based on the findings of this inspection, the Division has reason to believe that the Operator is in violation of <br />C.R.S. 34-32.5-116(4)(1) for failure to protect areas outside of the affected land from slides or other damage <br />occurring during the mining operation or reclamation. The possible violation will be scheduled for the January <br />6-7, 2010 Mined Land Reclamation Board Hearing. The Operator may choose to waive their right to a 30 day <br />notice by submitting a statement in writing to the Division, as required by C.R.S. 34-32.5-124(4). If the <br />Operator waives their right to a 30 day notice, the possible violation will be scheduled for the next Mined Land <br />Reclamation Board Hearing. Notice of such hearing will be sent under separate cover. This concluded the <br />inspection. <br />I & E Contact Address <br />NAME: Ken Coulson <br />OPERATOR: Coulson Excavating Company, Inc. <br />STREET: 3609 N_ Count?4 Road 13 <br />CITY/STATE/ZIP: I nvPlc-rnd. CCU 80,938 <br />CERTIFIED MAIL NO. 7008 0500 0000 5587 0128 <br />Return Receipt Requested