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PERMIT #: M-1984-108 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: December 1, 2010 <br />OBSERVATIONS <br />This inspection was conducted as part of the normal monitoring program of the Colorado Division of Reclamation, <br />Mining, and Safety (Division). Division inspector Russ Means was accompanied by Western Gravel, Inc. Representative <br />Shauna Hovey on site. The Olathe Pit is a 110c permitted gravel pit located off County Road 59 south of Olathe. <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. The <br />sign is located at the gate: to the site entrance. Permit boundaries are marked by t-posts although not all were checked. <br />A records review noted that the Division began enforcement action for exposure of groundwater in 2009. The <br />enforcement action was to increase the bond for backfilling a second unapproved pond. The action was halted based on <br />the operator's applying for substitute water plan with the Division of Water Resources. The inspector notes that there is <br />not any final documentation showing the process was completed. Also, it is noted by DWR that an augmentation plan is <br />required. The lack of the final augmentation plan approval is listed as a problem under hydrology with a corrective action <br />date. The inspector is requesting that Western Gravel submit the final signed substitute water plan approval letter from <br />DWR. Please note this issue also affects the reclamation liability issues discussed below. <br />Annual Reports are not clear on if there has been mining activity on site in the last 5 years. Currently, there is no <br />equipment, fuels, or stockpiles on site. It appears per the maps and reports that mineable materials are either depleted or <br />nearly so. The operator is reminded that if a site is inactive for 5 years reclamation must be done per Rule 3.1.3. Please <br />clarify when the last date of any type of mining operations occurred on the site by January 9, 2011. Also please clarify <br />when the topsoil pile located just north of the access road and adjacent to the south pit was placed there. This issue is not <br />being listed as a problem currently. Failure to respond by the noted date will result in the matter being reclassified as a <br />problem with corrective action dates however. <br />The north pit is reclaimed and appears releasable except for two issues. They are the noted augmentation plan for the <br />exposed groundwater and a well documented problem with noxious weeds. While the inspector is sympathetic to the fact <br />that infestations of knapweed in the area is persistent, the operator needs to supply proof that weed spraying is being done <br />annually. The current infestation notes some possible treatment but several healthy patches of the weed as well. Weed <br />control activity should be noted in the annual reports for documentation of the operator's efforts. If it can be <br />demonstrated that an operator did everything possible to control a noxious weed but outside infestations affected those <br />efforts it can be considered in any release request. If untreated or inadequately treated the presence of noxious weeds <br />could have a major impact on any future reclamation and release requests. The presence of knapweed is noted as a <br />problem under reclamation plan compliance with a corrective action date. <br />The south pit is not reclaimed. While some slopes appear to be 3:1 and have volunteer vegetation, there is no approved <br />plans for reclamation of the area. As noted in past inspections the south pond is an unapproved addition to the mine <br />permit and reclamation plans. The area was approved as a stockpile area and never approved for excavation and exposure <br />of groundwater. The operator has not yet addressed the additional excavation and pond creation within the reclamation <br />permit for the Division. Since the post mine land use is wildlife habitat an amendment is not required However, a <br />technical revision (TR) to the permit is required to address the creation of the pond and reclamation of the slopes and <br />surrounding area. The TR must be submitted within 60 days of this report. This issue is being listed as a problem for the <br />mine plan with a corrective action date. <br />The cancelation notices of the current bonds held by Western Gravel are facilitating inspections and reviews by the <br />Division. The bond for this site was reviewed as part of the latest inspection. The bond for the Olathe Pit was <br />recalculated in 2008 based on an inspection in late 2007 by Division Specialist Wally Erickson. That bond reflected the <br />liability for exposed groundwater without proper water rights. The recalculated bond amount of $1,475,493.00 is for <br />backfilling the pits due to the lack of approved augmentation plans for either of the ponds created. The Division began <br />enforcement proceeedings for failure to post the bond increase in February of 2009. The action was postponed several <br />times to allow Western Gravel the opportunity to correct the water rights issue. According to Division records the action <br />was never formally dismissed or reviewed by the Mined Land Reclamation Board as of August 2009. Two years since the <br />Page 3 of 7