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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1974-069 <br />INSPECTION DATE: 5/18/2010 INSPECTOR'S INITIALS: ECS <br />OBSERVATIONS <br />This was an acreage release inspection for an operational 112c sand and gravel operation conducted by Eric <br />Scott of DRMS for the Larimer Pit site operated by Loveland Ready Mix. DRMS met with permittee <br />representative Stephanie Fancher at the Loveland Ready Mix Larimer Pit batch plant office at approximately <br />0915 and toured the site with her. The Mariana Butte Pit (M1988-033) and Baer Pit (M1984-113) were also <br />inspected for final site releases during this visit. <br />The Larimer Pit site has been permitted and operational since 1974. As such, some of the reclaimed areas <br />visited during this partial release inspection have been mined out and reclaimed for quite some time. On <br />January 8, 2010 the final augmentation plan for the Larimer Pit site was approved by the Colorado State District <br />Court, Water Division 1 by Decree OOCW142. This fulfills the reclamation requirements for exposed water for <br />this entire site. <br />The permit area to be released east of Wilson Ave has been out of production for approximately 20 years, and <br />has since been redeveloped as a residential property north of the Big Thompson River, and a City of Loveland <br />Waste Recycling Center on the south side of the river. The permit area to be released west of Namaqua Drive <br />has been reclaimed as both open water and lined water storage ponds surrounded by vegetated open space. The <br />lined water storage areas have both met the SEO performance standard for lined ponds (SEO letters for Pond #1 <br />on Aug 24, 2000, and Pond #2 on May 5 2006). Vegetation surrounding the western-most two unlined ponds <br />(12 and 15) has been established for quite some time and is in excellent condition. The vegetation surrounding <br />the lined ponds, although considerably newer, is also establishing very well and is acceptable for release at this <br />time. All of the areas proposed for release meet release criteria at this time and will be removed from the <br />permitted area. It was also proposed during a tour of the site that the unaffected fenced residential property <br />located west of Namaqua Drive and between Cells 8 and 9, be released from the currently permitted area if <br />mining is no longer intended in that area. The operator will need to submit a release request with a revised <br />permit boundary map and acreage total in the next 30 days for this inspection to serve as the release inspection <br />for this additional residential property. If DRMS receives this request within the next 30 days, the appropriate <br />release notices will be sent out, and the unaffected residential property released if there are no objections <br />received. <br />When all acreage releases are completed, the bond for the remaining permitted area of the Larimer Pit will be <br />recalculated according to the approved reclamation plan for the remainder of the site. This should result in a <br />lower total bond for the site as the final water augmentation plan for the site has been approved in Water Court, <br />and the pre-existing batch plant will be allowed to remain after mining is completed as a valid non-conforming <br />land use. Remaining reclamation work will consist primarily of earthwork, sloping of remaining shorelines, <br />revegetation, and weed control. <br />DRMS would like to commend Loveland Ready Mix on an excellent job of concurrent site reclamation. Two <br />general inspection issues were noted during the tour of the site that will need attention. The first is that the <br />southern border of the affected area will need to be clearly marked - there are no permit markers currently <br />present along this border. The second is that weed control measures will need to be taken to prevent the further <br />establishment of cheatgrass in previously disturbed areas such as the Cell 9 area. The site cannot be approved <br />for final release if excessive noxious weeds such as cheatgrass are present, and as you are aware, once <br />cheatgrass is widespread it is exceptionally difficult to eradicate.