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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-11999-091 <br />INSPECTION DATE: 1/12/1 INSPECTOR=S INITIALS: MAC' <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Connie Davis, Chris Pilmer, and Niel Poulsen of Aggregate Industries and Dick vonBernuth, the <br />landowner, were also present for the inspection. The Stegner Farms site is located one half mile southeast of <br />LaPorte, Colorado. The site is permitted for 80 acres and the post-mining land use is developed water resource. <br />This inspection was conducted in response to a request for a reduction of the financial warranty, received by the <br />Division on December 9, 2009. The Operator has requested reducing the financial warranty from $273,400.00 to <br />$40,000.00, or a decrease of $233,400.00. <br />The permit sign was posted and the permit boundary was clearly delineated per Rule 3.1.12. The Operator is not <br />currently mining the site; however, the site is considered active because the Operator is selling material from the <br />product stockpiles. Upon the completion of reclamation, the site will contain a single reservoir. The Operator <br />installed a slurry wall around the pit in 2000. The slurry wall passed the leak test in 2009 and has been certified <br />as meeting the design standards of the Office of the State Engineer. A perimeter drain was installed around the <br />slurry wall in 2005. The Operator has committed to continued monitoring of the existing groundwater wells <br />until reclamation is complete and the Division releases the financial warranty. A review of the Division's <br />records found the Operator has not submitted groundwater data since 2004. In order for the Division to <br />determine if the perimeter drain is functioning properly, the Operator will need to submit groundwater data from <br />2004 to present day. Upon receipt of the data, the Division will conduct a review to determine if groundwater <br />monitoring may be discontinued. <br />Mining at the site is near completion; there is still material to be mined in the northwest corner of the reservoir. <br />Aggregate Industries has a limited presence at the site; all equipment and processing plants have been removed. <br />There are several product stockpiles located at the east end of the reservoir and near the entrance to the site. The <br />stockpiles include: 1/2 inch gravel, sand and road base. Topsoil has been stockpiled at the west end of the site; <br />topsoil stockpiles are vegetated and stable. The Operator indicated they may transfer the permit to the landowner <br />in the near future. If the Operator plans to, or does, temporarily cease production of the mining operation for one <br />hundred eighty (180) days or more, the Operator must file a Notice of Temporary Cessation in writing per Rule <br />1.13.5(1). <br />The reservoir slopes have been graded to 3H:1 V or flatter. The following reclamation must be completed before <br />the site is eligible for release: <br />1. Ripping of compacted areas. <br />2. Replacement of topsoil. <br />3. Seeding of disturbed areas. <br />The Division will calculate the remaining reclamation costs and will provide them to the Operator under <br />separate cover. Based on the observations of this inspection, the site is eligible for a surety reduction. Notice of <br />the surety reduction approval will be sent under separate cover. <br />This concluded the inspection.