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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2001-001 <br />INSPECTION DATE 4113/10 <br />INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of the Division's review process of SO-01, transferring the permit from <br />Four States Aggregates to Stone Sand and Gravel. SO-01 appears little more than a change in name of <br />the Operator; the contact person, address and phone number remain the same. This report is <br />accompanied by five photos and an updated reclamation cost estimation totaling $41,187. <br />Public access is controlled by locked gate. Mine identification sign was posted at the mine entrance. <br />Permit markers were posted. Mining and reclamation activities appeared dormant. The site appeared <br />well managed, stable and compliant with permit conditions and the Act and Rules. <br />The Division last reviewed the cost of reclamation during the review of the applicatiof , At that time the <br />Applicant had not yet demonstrated a legal right to expose ground water. Therefore, the Division <br />required $91,917 financial warranty, as necessary to backfill the proposed excavation to approximately <br />two feet above the water table and thereby ensure compliance with the requirements of Rule 3.1.6(1)(a). <br />Since that time, the Operator has secured a valid well permit from the Office of the State Engineer, <br />Division of Water Resources, and is compliant with the associated augmentation and/or substitute water <br />supply plan. Therefore, the Operator appears to be compliant with the requirements of Rule 3.1.6(1)(a) <br />and a corresponding reduction in the amount of financial warranty, required by the Division, appears <br />appropriate. <br />The Division has reviewed the current cost of reclamation totaling $41,187. Please find enclosed 18 <br />pages of summary, worksheets and data sheets utilized by the Division to calculate the cost of <br />reclamation. Currently, the Division holds $92,000 financial warranty for the site. Therefore, the <br />Operator may request $50,813 reduction in the amount of financial warranty for the operation. <br />Upon receipt and approval of $41,187 financial warranty, properly executed for Stone Sand and Gravel, <br />LLC, as Operator, the Division can approve SO-01. <br />Thank you for your patience. <br />Response to this inspection report should be directed to the Division's office in Durango at 691 County <br />Road 233, Suite A-2, Durango, CO 81301, to the attention of Wally Erickson, phone (970) 247-5469. <br />Please note the change of address for the Division's office in Durango. <br />I & E Contact Address <br />NAME Kathy Stone <br />OPERATOR Four States Aggregates <br />STREET P.O. Box 1568 <br />CITY/STATE/ZIP Cortez. CO 81321 <br />cc: Steve Shuey, DRMS <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />? WQCD (CH) <br />? OTHER