2010-08-31_INSPECTION - M1979045

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(Page 2) MINE ID # OR PROSPECTING ID #: M-1979-045 INSPECTION DATE: 22 July 2010 INSPECTOR'S INITIALS: DR2_ OBSERVATIONS This was a routine inspection conducted by David Bird of DRMS along with Steve O'Brian of Environment, Inc. representing the operator. The site is located about 10 miles north of Golden and about 1/2 mile east of Highway 93 near the former west entrance to Rocky Flats. DRMS records list clay as the only commodity produced at the site, but sand and gravel are also produced. The total permit area is 75.74 acres, and the Division holds financial warranty in the amount of $84,700 for the site. The post-mining land use is described as wildlife habitat. Lakewood Brick and Tile operates the clay mine, located in the north central part of the permit area. Bestway Concrete Company operates the sand and gravel processing operation, the bulk of which is in the south-central to southeast part of the site. Processing was active at the sand and gravel operation but inactive at the clay operation during the inspection. According to Mr. O'Brian, the clay mine was originally excavated in the 1930's, and current production ranges from 10,000 to 17,000 yards per year. The Rocky Flats Pit operation (M-1987-113) is directly east of and contiguous to the Church Pit property. An agreement exists between Lakewood Brick & Tile, permit-holder of the Church Pit, and Bestway Concrete Company, permit-holder of the Rocky Flats Pit, whereby material mined from both operations is processed within the boundaries of the Church Pit permit. There are two potential issues at the site that need to be addressed. First, there appears to be exposed ground water at the site, which is a problem with respect to §34-32.5-116(4)(h) C.R.S. of the Colorado Land Reclamation Act. This is stated as a problem on page 3 of this report. As explained in a letter sent to operators dated April 30, 2010, there are several options available for mitigating this problem. A copy of the letter is attached to this report. Second, the large overburden pile resulting from excavation of the Rocky Flats pit currently lies within the boundaries of the Church Pit permit. If not sold or otherwise removed before closure, the cost of removing this overburden via backfilling into the Rocky Flats pit upon final reclamation is currently included in the Financial Warranty held for the Rocky Flats Pit permit. However, the cost for reclaiming/removing this stockpile more appropriately belongs with the Church Pit. Neither the Church Pit nor the Rocky Flats Pit permits contain in their Reclamation Plans any provision for using the overburden stockpile as backfill. Therefore, the attached reclamation cost estimation worksheets for the Church Pit reflect this cost, and based on the updated calculation the currently held financial warranty is inadequate. This is included as a problem on page 3 of this report. After the revised financial warranty has been provided for the Church Pit, the operator may apply for a surety reduction for that portion of the Rocky Flats Pit, which when calculated in October 2007 was $244,776. The operator may also apply for a surety reduction in the event the overburden stockpile is sold or otherwise removed from the site. As a final administrative note, the financial warranty for this site has not been recalculated since the 2000 inspection. Consequently, inflation has substantially increased some costs over the 2000 estimate. For example the cost of revegetation in 2010 has increased about 92% over the cost in 2000. Costs for other reclamation activities can be expected to show comparable increases, and this is reflected in the Cost Summary Worksheets attached with this report. I & E Contact Address cc: F CE F BLM NAME: Thomas Murray F USFS r HW OPERATOR: Lakewood Brick & Tile Company I' HMWMD t OSE STREET: 1325 lay Street r WQCD CITY/STATE/ZIP: Lakewood. CO 80214-2052 F OTHER (Steve O'Brian)