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PERMIT #: M-1987-026 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: September 2, 2010 <br />(MP) Gen. Compliance With Mine Plan: <br />The Black Obsidian site is permitted for 9.0 acres of disturbance and has an intermittent status. The approved <br />mining plan for the site indicates a rectangular permit area, measuring 850' X 450' consisting of two pits and <br />states no water will be used in the mining operations. Pit #1 will be approximately 200' wide by 300' long and <br />Pit #2 will be approximately 100' wide by 200' long. The site was not active during the inspection, however <br />evidence of recent highwall excavation was observed in the northwest corner of the pit and a product stockpile <br />was observed in the southeast corner of the pit floor. Mr. Mugrage confirmed blasting and crushing had <br />occurred recently at the site. No processing or mining equipment was observed at the site. <br />The permit boundary markers and fenceline were GPS surveyed with a Trimble Geo XT by the Division. A <br />map indicating the results of the GPS survey is attached. The GPS results indicate a non-rectangular permitted <br />area of 8.2 acres. The permit boundary shape and acreage are not consistent with the approved mine plan and <br />are cited as a problem requiring corrective action by the Operator above. The Operator must submit a technical <br />revision, per Rule 1.9, with the required $216 fee to revise the mining plan to indicate the current and future <br />mining disturbance at the site. <br />The water filled sump noted during the previous inspection remains at the site. The sump is below grade and <br />does not have an outlet to release the water within 72 hours as required by the Colorado Department of Public <br />Health and Environment's Water Quality Control Commission. The source of the water is unknown and could <br />not be determined during the inspection. If the source of the water is storm water, the Operator must obtain a <br />Storm Water Discharge Permit from the Colorado Department of Public Health and Environment and develop a <br />storm water management plan. If the source of the water is groundwater, the Operator must obtain a well <br />permit and a Substitute Water Supply Plan for the exposed groundwater from the SEO. Alternatively, the <br />Operator may backfill the sump to prevent water from being impounded at the site. <br />(RS) Reclamation Success: . <br />The approved post mine land use for the site is rangeland. Reclamation activities have not begun at the site. A <br />well-vegetated and stable stockpile of topsoil was observed southeast of the pit floor. Noxious weeds, Diffuse <br />Knapweed and Common Mullein, were observed within the permit boundary. This was cited as a problem <br />requiring corrective action by the Operator above. The weeds were primarily located southeast of the pit floor <br />at the toe of the temporary slope. The Division recommends the Operator contact the Custer County weed <br />control department to discuss this issue. <br />(SM) Signs and Markers: <br />The required mine entrance sign was observed during the inspection as required by Rule 3.1.12(2). The sign is <br />weathered and difficult to read. The Division suggests the Operator install a new sign to identify the mine site. <br />Photographs taken during the inspection are attached. Please contact Peter Hays at 303.866.3567 Ext. 8124 <br />with questions regarding this inspection report. <br />Inspection Contact Address <br />Bill Tezak <br />Colorado Quarries, Inc. <br />270 S 15th St <br />Canon City, CO 81212 <br />Page 3 of 5