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of Cow COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />N=? o MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866-3567 <br />* /876 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: MINE/PROSPECTING ID#: MINERAL: COUNTY: <br />Black Obsidian M-1987-026 Stone Custer <br />INSPECTION TYPE: INSPECTOR(S): INSP. DATE: INSP. TIME: <br />Monitoring Peter S. Hays September 2, 2010 09:00 <br />OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br />Colorado Quarries, Inc. Charlie Mugrage 110c - Construction Limited Impact <br />REASON FOR INSPECTION: BOND CALCULATION TYPE: BOND AMOUNT: <br />Normal I&E Program Complete Bond $66,400.00 <br />DATE OF COMPLAINT: POST IN". ONTACTS: JOINT INSP. AGENCY: <br />N/A None None <br />WEATHER: IN O SI URE: SIGNATURE DATE: <br />Clear September 23, 2010 <br />The following inspection tonics were identified as having Problems or Possible Violations. OPERATORS <br />SHOULD READ THE FOLLOWING PAGES CAREFULLY IN ORDER TO ASSURE COMPLIANCE <br />WITH THE TERMS OF THE PERMIT AND APPLICABLE RULES AND REGULATIONS. If a <br />Possible Violation is indicated, you will be notified under separate cover as to when the Mined Land <br />Reclamation Board will consider possible enforcement action. <br />INSPECTION TOPIC #1: Hydrologic Balance <br />PROBLEM/POSSIBLE VIOLATION: Problem: The site is improperly impounding surface drainage/runoff. <br />The Division has no evidence the Operator has a valid storm water discharge permit, well permit, substitute water <br />supply plan, or approved water augmentation plan-for the storm water or possible exposed groundwater at the <br />site. This is a problem related to 34-32.5-116(4)(h) of the Colorado Revised Statutes and 3.1.6(1)(a) of the <br />Construction Materials Rules and Regulations governing injury to existing water rights. <br />CORRECTIVE ACTIONS: The Operator shall demonstrate the operation is in compliance with the Office of <br />the State Engineer (SEO) and/or Colorado Department of Public Health and Environment (CDPHE), or show <br />evidence the Operator is taking measures to bring the site into compliance with the SEO and/or CDPHE, or <br />backfill the sump to prevent water impoundment by the corrective action date specified. <br />CORRECTIVE ACTION DUE DATE: 11/01/10 <br />INSPECTION TOPIC #2: Reclamation Success <br />PROBLEM/POSSIBLE VIOLATION: Problem: There are state-listed noxious weeds (Diffuse Knapweed and <br />Common Mullein) present on site. This is a problem for failure to employ weed control methods for state listed <br />noxious weed species within the permitted area, and to reduce the spread of weeds to nearby areas as required by <br />Section 3.1.10 (6) of the Rule. <br />Page 1 of 5