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PERMIT #: M-2010-055 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: August 9, 2010 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety (Division). <br />Joel Konig was also present for the inspection. The Division received a notice of a possible illegal mining operation on <br />July 29, 2010 from Weld County. The site is located approximately 3.5 miles southwest of Grover, Colorado in Weld <br />County. A review of the Division's records found that a reclamation permit has not been issued for the site. <br />The purpose of this inspection was to follow-up on an inspection conducted on August 5, 2010. During the previous <br />inspection the property could not be accessed and field observations had to made from Weld County Road 81. The <br />Division made contact with Mr. Joel Konig, the site operator, following the August 5th inspection and scheduled this <br />inspection to make a final determination as to whether the Operator was engaged in mining without a permit. According <br />to Mr. Konig, the borrow material was being mined and sold to Noble Energy, in addition to being used on adjacent <br />properties owned by the Konig family. <br />The site is located approximately 475 feet east of Weld County Road 81. During the inspection the disturbed area was <br />traversed with a Trimble GeoXT GPS unit. The disturbed area, including the access road, was determined to be 10.85 <br />acres in size. The topsoil was stripped off and stockpiled around the perimeter of the site. Product stockpiles of various <br />sizes are located in the southwest corner of the site. The Operator has mined into a hillside with an easterly aspect and has <br />created a level pit floor. The pit walls on the west and south sides are graded to 3H:1 V or flatter and range from two to six <br />feet in height. No mining was taking place during the inspection and Mr. Konig indicated no processing of material has <br />occurred on the site. <br />Mr. Konig was informed of the Division's permitting process and was provided with a 112 Construction Materials <br />Reclamation Permit Application Package. In addition, he was provided with a copy of the Colorado Land Reclamation <br />Act for the Extraction of Construction Materials and the Minerals Rules and Regulations. <br />Based on the findings of this inspection, the Division has reason to believe the Operator is in violation of C.R.S. 34-32.5- <br />109(1) for failure to obtain from the board or office a reclamation permit prior to engaging in a new mining operation. The <br />possible violation will be scheduled for the September 15-16, 2010 Mined Land Reclamation Board Hearing. The notice <br />of possible violation will be sent under separate cover. <br />This concluded the inspection. <br />I, Michael Cunningham, hereby certify that on August 11, 2010, I deposited a true and complete copy of this <br />foregoing inspection report in the United States Mail, first class postage paid, to the operator of record for this <br />site at the address indicated, and to others within the body of this report who have been designated to receive <br />copies (DBMS personnel excepted). <br />a <br />,?&- ? Signature <br />Page 2 of 4