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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1980-183 <br />INSPECTION DATE: 05 FehnmW 2010 INSPECTOR'S INITIALS: DR? <br />OBSERVATIONS <br />This inspection was conducted by David Bird of DRMS in response to a Surety Reduction request from the <br />Operator. Pit 29 is an active 112(c) operation that mines sand and gravel. Total permit area is 176.24 acres. <br />DRMS holds financial warranty in the amount of $1,950,412 for the site. Mr. Theran Olsen, Division Manager, <br />was present for Brannan Sand & Gravel Company. <br />The Operator has requested a surety reduction from the current $1,950,412 down to $400,000 based on the fact <br />that slurry walls have been installed around all three of the future water storage facilities, and the southernmost <br />cell, designated Reservoir I, has passed the State Engineers' leak test and is considered to be fully reclaimed and <br />ready for release. <br />Because the operator has fully installed the slurry walls in accordance with the Reclamation Plan, but has not yet <br />tested them fully due to the active mining that is ongoing, the site is eligible for the Division's "20 percent" <br />bonding option. Components of the full site reclamation that are directly related to installation of the slurry wall <br />will be reduced to 20 percent of the final cost in the calculation of the final required Financial Warranty for the <br />site. Components that are not directly related to slurry wall installation, such as site revegetation, are not subject <br />to the 20 percent rule and will be required in their entirety. <br />The shoreline around Reservoir I has not been revegetated as required by the Reclamation Plan, and is suffering <br />from a noticeable weed infestation. However, the Reclamation Plan also specifies that herbicides will not be used <br />because of the future use of the reservoir as a municipal water supply, and that weed control will be via mowing <br />only. 'DRMS will only approve a future financial warranty release on the condition that the weeds are mowed <br />and tilled prior to the ground being reseeded. <br />Based on the criteria discussed above and the current condition of the site, the Division has calculated a required <br />Financial Warranty of $568,900, rather than the $400,000 requested by the Operator. Worksheets showing the <br />calculations are attached. Formal approval of a Surety Reduction request to $568,900 will be sent under separate <br />cover. The Operator may contact Elizabeth Merry in the DRMS office at 303-866-3567 x8148 to discuss options <br />for submitting a replacement Financial Warranty. <br />A related item in light of the potential impacts to the hydrologic balance due to the existence of the slurry walls is <br />the need for adequate monitoring of local ground water levels. As the permitted Operator, Brannan Sand & <br />Gravel is required to comply with §34-32.5-116(4)(h) CRS, and Rule 3.1.6(1) of the Construction Materials Rules <br />& Regulations pertaining to protection of the prevailing hydrologic balance. To ensure compliance with the Act <br />and Rules pertaining to protection of the prevailing hydrologic balance, the Operator is hereby instructed to <br />submit to DRMS a Technical Revision that describes a ground water level monitoring plan that includes at a <br />minimum the following: <br />1) The operator must collect and report ground water level data from the following monitoring wells: <br />MW-1 IN MW-1 OUT <br />MW-2 IN MW-2 OUT <br />MW-3 IN MW-3 OUT <br />2) The ground water level data must be collected at a minimum every calendar quarter, with calendar quarters <br />defined as follows: 1" quarter = Jan-Mar; 2nd quarter = Apr-Jun; 3'' quarter = Jul-Sep; 4" quarter = Oct-Dec. <br />The data for any given calendar quarter will be due by the end of the month that follows the end of the calendar <br />quarter.