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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1997-089 <br />INSPECTION DATE 4/13/10 <br />INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as follow-up to an application for transfer of permit from Daren Stone to Stone <br />Sand and Gravel, LLC (SO-01). One photo and an updated reclamation cost estimation totaling $50,913 <br />accompany this report. <br />Permit documents describe a 158 acre permit area, with approximately 104 acres to be affected by <br />mining and reclamation activities. The mine plan is phased, with contemporaneous reclamation, limiting <br />the extent of un-reclaimed disturbance to approximately nine acres. Based on observations made during <br />the inspection, and map measurements taken from the 2009 annual report map, mining activities have <br />consumed most of the mineable materials. The Operator has completed backfilling, grading and topsoil <br />replacement for approximately 62 acres. Of those 62 acres, approximately 27 acres exhibited poor <br />vegetative cover. The poor vegetative cover was sparse and weedy and consisted of Russian thistle <br />(tumble weed) and a few reclamation species. Although vegetative cover was of poor quality for the <br />selected post-mining land use (rangeland), it appears sufficiently established to control erosion. <br />Evidence of excessive erosion was not observed. The active pit and processing area was estimated at <br />ten acres. <br />Based on the above assumptions the Division has reviewed the current cost of reclamation totaling <br />$50,913. Please find enclosed 13 pages of summary, worksheets and data sheets utilized by the <br />Division to calculate the cost of reclamation. Therefore, the existing $17,232 financial warranty appears <br />insufficient to ensure reclamation. Pursuant to Rule 4.2.1(2), the Operator has 60 days, by August 2, <br />2010, to post $33,681 additional financial warranty, to ensure a total financial warranty not less than <br />$50,913. <br />Please be aware that annual reports always require a map of current site conditions, regardless of <br />whether any disturbance has occurred during the report year. <br />Response to this inspection report should be directed to the Division's office in Durango at 691 County <br />Road 233, Suite A-2, Durango, CO 81301, to the attention of Wally Erickson, phone (970) 247-5469. <br />Please note the change of address for the Division's office in Durango. <br />I & E Contact Address <br />NAME Kathy Stone <br />OPERATOR Stone Sand & Gravel <br />STREET P.O. Box 1568 <br />CITY/STATE/ZIP Cortez, CO 81321 <br />cc: Steve Shuey, DRMS <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />? WQCD (CH) <br />? OTHER