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PERMIT #: M-2005-033 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: June 17, 2010 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety (Division). <br />Dick Coulson of Coulson Excavating Co., Inc. was also present for the inspection. The Gardels Pit is located one mile east <br />of Loveland, Colorado. The site is permitted for 30 acres and the post-mining land use is general agriculture. <br />The permit sign was not posted at the entrance to the site as required by Rule 3.1.12, this has been cited as a problem and <br />will require corrective action by the Operator. Mining and reclamation activities have been completed at the site. The site <br />contains three ponds. Two of the ponds are located on the east end of the permit boundary(Cells C and D); these ponds are <br />clay-lined and contain water. A small groundwater fed pond is located at the west end of the site (Cell B), this area has <br />been reclaimed to a wetland. According to the approved Reclamation Plan, the reclaimed site was to contain a wetland <br />area in Cell B and a single clay-lined pond in Cell D. As noted above, the reclaimed site contains two clay-lined ponds <br />and a wetland area. Any change to the Reclamation Plan requires Division approval through a Technical Revision; this <br />has been cited as a problem and will require corrective action by the Operator. <br />A review of the permit file found the Division does not have any record of a liner test for the two clay-lined ponds. Prior <br />to final release, the Operator must provide documentation showing a liner test has been conducted and meets the <br />Performance Standards of the Office of the State Engineer. In addition, a review of the permit file found the Division does <br />not have any record of a temporary substitute water supply plan, well permit or court approved augmentation plan for the <br />exposed groundwater in the wetland area; this has been cited as a problem and will require corrective action by the <br />Operator. <br />The pond slopes have been reclaimed to 3H:1 V or flatter and do not show any signs of erosion. The vegetation is well <br />established throughout the site. The following grass species were observed: sideoats grama, thickspike wheatgrass, and <br />alphalpha. <br />The Division holds a financial warranty in the amount of $291,800.00, which is sufficient to complete any remaining <br />reclamation. <br />This concluded the inspection. <br />Page 2 of 4