2010-08-27_INSPECTION - M1987079

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PERMIT #: M-1987-079 INSPECTOR'S INITIALS: JLE INSPECTION DATE: August 16, 2010 OBSERVATIONS This was a normal monitoring inspection of the Lamar Pit, File No. M-1987-079; operated by All Rite Paving and Redi Mix, Inc. This site is located one mile north of Lamar, Colorado in Prowers County. I, Jared Ebert of the Colorado Division of Reclamation, Mining and Safety (Division) conducted the inspection. Mr. Herb Pearson of All Rite Paving and Redi Mix accompanied me on the inspection. This is a 112c mining operation with 39.3 permitted acres. This site is split up into three distinct areas; a processing/stockpiling area, and the Phase 1 and Phase 2 mining areas. The processing area is an industrial site used to manufacture asphalt and concrete, the reclamation plan indicates this area will remain operational after the site has been mined and reclaimed. The Operator has wet mined and created a 4.5 acre ground water pond in the Phase 1 mining area based on a measurments taken from a 2009 aerial photograph of the site. It appears the site has not been actively mined since 2001. No mining appears to have occurred in the Phase 2 mining area. This area is primarily vegetated with grasses and trees, and a road traverses the site. The Phase 2 mining area is separated by the Phase 1 mining area by an underground gas line. The required mine entrance sign was not posted at the entrance of the mining operation, and many of the permit boundary markers appeared to be missing. This issue is cited as a problem at the beginning of this report and will require corrective action to be taken by the Operator. The side slopes above the water line of the current pit excavation are fairly steep, approximately ranging from a 2:1 to 2.5:1 horizontal to vertical ratio. The topsoil stripped from the site appears to be located in two piles; one is along the southern permit boundary line and east of the pond, and another stockpile is located north of the pond. As stated above, the Division estimates there is approximately 4.5 acres of exposed groundwater at the site. Because exposed groundwater results in out-of-priority water depletions, operations which expose groundwater must also eventually obtain a water-court approved augmentation plan. Currently the Operator has not demonstrated to the Division that they have obtained a permanent augmentation plan, nor do they hold a financial warranty to provide an alternative method to mitigate injurious stream depletions that result from mining-related exposure of ground water. The Division has statutory duty to ensure that operators have sufficient bonding to achieve reclamation. In order to assist operators in achieving compliance with the requirements, the Division proposes that, by April 30, 2011, All Rite Paving and Redi Mix, Inc. should contact the Division and agree upon a plan for achieving compliance with state water laws and providing a sufficient bond to address the exposed ground water. The Division has identified four approaches for operators to address this issue: 1.) File a financial warranty that will ensure backfilling of the pit to cover the exposed ground water to a depth of two feet above the static ground water level or, 2.) Obtain a court approved augmentation plan for the current and future proposed exposed groundwater. 3.) File a financial warranty to cover the cost of installing a clay liner or slurry wall that meets the Division of Water Resources requirement for preventing groundwater exposure or, 4.) Obtain approval from the Division of Water Resources that acknowledges compliance with the SEO's requirements pursuant to §37-90-137 (11). Enclosed with this report is a letter All Rite Paving and Redi Mix, Inc. should have received in regard to this issue. The Division recommends the Operator read this letter in its entirety. Failure to address this issue may result in a possible violation, corrective actions and civil penalties. Finally, the Division observed the Operator backfilling the southern pond slope with concrete material. It appears the Operator washes out concrete mixing trucks and dumps the wash water and concrete onto the pit slopes. This material subsequently flows into the pit and comes into contact with the groundwater. During the conversion process in 1994, the Division approved the concrete backfilling operation. However, at this time in accordance with Rule 3.1.5 (9) of the Construction Materials Rules and Regulations, if an operator intends on using structural fill as backfill material, the Page 2 of 5