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PERMIT #: M-1996-079 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: November 16, 2010 <br />INSPECTION TOPIC: Signs & Markers <br />PROBLEM/POSSIBLE VIOLATION: Problem: The affected area boundary markers are missing or incorrectly placed. This is a <br />problem for failure to maintain boundary markers around the affected area as required by Section 3.1.12(2) of the rule. <br />CORRECTIVE ACTIONS: The operator shall conduct a survey and replace the boundary markers in the correct location(s). The <br />operator shall provide proof to the Division that this has been done by the corrective action date. Proof of compliance may be in the <br />form of photographs. <br />CORRECTIVE ACTION DUE DATE: 12/17/10 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety (Division). <br />Chester Barnard was also present for the inspection. The Barnard Quarry is located approximately 3 miles north of Lyons, <br />Colorado. The site is permitted for 5.6 acres and the post-mining land use is wildlife habitat. <br />The Barnard Quarry was inspected as part of the Division's regular monitoring program. The permit sign was posted at <br />the entrance of the site per the requirements of Rule 3.1.12. <br />Financial Warranty: <br />The Division currently holds a financial warranty in the amount of $6,100. The Division is required to hold a financial <br />warranty in a sufficient amount to complete reclamation of the site pursuant to C.R.S. 34-32.5-117(4)(b)(I). Based on <br />observations made during this inspection, the Division has reason to believe the Operator has deviated from the Mining <br />Plan by stockpiling more overburden than is accounted for in the most recent bond estimate. Therefore, the Division will <br />recalculate the amount of the financial warranty. Notice of an increase in the financial warranty will be sent under separate <br />cover. <br />Hydrologic Balance: <br />The excavation area contained water from surface runoff. The water was estimated to be up to 10 feet deep, palettes of cut <br />stone could be seen under water. The Operator stated the water was periodically pumped out of the pit onto an adjacent <br />mine site to the east of the permit area. The Division does not have any record of a Stormwater Discharge Permit from the <br />Colorado Department of Public Health and Environment and the Reclamation Permit clearly states no ponds would be <br />created. The main excavation area is approximately 0.1 acres in size. Several smaller excavations to the west of the main <br />excavation are also impounding water. Hydrophytic vegetation was observed around these impoundments indicating the <br />water has been in place longer than 72 hours. The impoundment of stormwater on the site is considered a problem and <br />will require corrective action by the Operator. <br />Gen Compliance With Mine Plan: <br />The Operator is currently excavating in the northeast corner of the permit area. The excavation has created a highwall <br />along the east side of the permit boundary; the highwall is approximately 20' in height. The Operator is placing <br />overburden and topsoil to the south of the excavation, to be pushed back into the depression during final reclamation of <br />the site. There appears to be enough material to reclaim the site to the final grade of 3H:1 V. The Mining Plan states there <br />will not be more than 1,000 yards of displaced material on site at any given time. Currently there is more than 1,000 cubic <br />yards of material on site. As a result the Division will recalculate the bond amount, please see comments under the <br />`Financial Warranty' section. <br />Off-site Damage: <br />The site was traversed with a Trimble GeoXT GPS unit to determine the extent of the disturbance. The data collected in <br />the field was downloaded into GPS Pathfinder Office and the disturbed area was found to be 6.56 acres in the size. The <br />location of the disturbed area could not be compared to the permit boundary due to a lack of boundary markers. However, <br />the size of the disturbance exceeds the size of the permit area by approximately 1 acre. Based on the findings of this <br />inspection, the Division has reason to believe the Operator is in violation of C.R.S. 34-32.5-116(4)(i) for failure to protect <br />areas outside of the affected land from slides or other damage occurring during the mining operation or reclamation. The <br />possible violation will be scheduled for the January 12-13, 2011 Mined Land Reclamation Board Hearing. Notice of such <br />hearing will be sent under separate cover. <br />Page 2 of 5