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PERMIT #: M-1998-080 <br />INSPECTOR'S INITIALS: RCO <br />INSPECTION DATE: August 30, 2010 <br />OBSERVATIONS <br />This inspection was performed by the Division to verify whether there was any current activity at this site, and the amount <br />of permitted disturbance to be reclaimed with the existing financial warranty. The operator is not current with the <br />payment of annual fees andthe Division has begun enforcement actions. There was no current activity, but there is <br />unreclaimed mining disturbance. This office was unable to contact the operator prior to the inspection. The operator was <br />not present at the site during the inspection. <br />(AT) Acid And Toxic Materials: <br />Narrative: There were several 5-gallon buckets of oil and hydraulic fluid at the site, amounting to an estimated total of <br />less than 25 gallons. Though they were not stored inside an impermeable secondary containment, there was no evidence <br />of spillage or contamination. These items will have to be removed, however, if operations recommence or when final <br />reclamation begins. This is not a problem at this time. <br />(BG) Backfilling and Grading: <br />Narrative: Active mining at the site began several years ago. The site appears as if mining ceased abruptly, since there <br />are tools and several pieces of equipment at the site, and unreclaimed disturbance. The mining consisted of drilling and <br />separating large blocks of massive sandstone from a 10-foot thick layer. This has resulted in a level sandstone floor, a <br />solid sandstone vertical highwall, and a large pile of sandstone rubble. No Backfilling or grading has occurred. <br />(EX) Explosives: <br />Narrative: It appears that sandstone was severed from the face manually with sledges and "pins and feathers", with no <br />explosives. There was no evidence of explosives at the site. <br />(FN) Financial Warranty: <br />Narrative: The financial warranty for this permit is a letter of credit from Dove Creek State Bank, in the amount of <br />$6,347. The current reclamation costs will be estimated, and the Division will attempt to send the new figures to the <br />operator. <br />(MP) Gen. Compliance With Mine Plan: <br />Narrative: The site includes the main mining level, and a lesser mining area off the north end, plus an upper area (to the <br />east) where stone is stored on pallets and the topsoil stockpiles are located. Equipment noted at the site includes a tracked <br />excavator, forklift loader, diesel compressor, hoses, rotary drill, flatbed farm truck, skid-mounted generator, 30 empty <br />wooden pallets and 14 pallets loaded with stone. <br />(PW) Processing Waste: <br />Narrative: Other than extracting and sorting stone, there does not appear to be any other processing. Handling has <br />produced a large amount of rubble. <br />(RS) Reclamation Success: <br />Narrative: Reclamation will conisist of backfilling rubble against the highwall, removal of equipment and debris, <br />respreading of topsoil, weed control and revegetation. No reclamation has been performed. <br />(TS) Topsoil: <br />Narrative: There was a large volume of topsoil windrowed along the upper eastern boundary of the site. It was covered in <br />annual weeds but did not exhibit erosion. <br />PHOTOGRAPHS <br />(These will be placed in the report after the contact addresses.) <br />Page 2 of 3