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PERMIT #: M-1979-187 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: December 29, 2010 <br />OBSERVATIONS <br />The Morrow/Murphy Gravel Pit, File No. M-1979-187, was inspected by Peter Hays with the Division of <br />Reclamation, Mining and Safety (Division) in response to the Technical Revision (TR) submitted on December <br />2, 2010 to increase the maximum disturbed acreage to 88.8 acres. Mr. Ron Morrow with Morrow & Sons, Inc. <br />was present during the inspection. <br />Rule 1.9.1 for the Mineral Rules and Regulations requires the Office to act on a Technical Revision application <br />within 30 days after the Technical Revision has been filed with the Office. The decision date of the Technical <br />Revision (TR-05) was January 1, 2010. Based on the observations from this inspection the Division approved <br />the Technical Revision on the January 3, 2011. Notification of the approval was mailed to the Operator under <br />separate cover. <br />The Morrow/Murphy Gravel Pit is located 2 miles northwest of Fraser, Colorado in Grand County. The site was <br />previously inspected by the Division on August 15, 2006. <br />Signs and Markers: <br />An entrance sign was posted and permit boundary markers were observed as required by Rule 3.1.12. Due to <br />the snow cover, the Division was only able to observe the boundary markers along the southern boundary. <br />Gen. Compliance with Mine Plan: <br />The site was active and snow covered at the time of the inspection. The asphalt/concrete batch plant located <br />in the southeast corner of the site was inactive. The two processing plants located in the middle of the site <br />were also inactive. Mining activities at the site were limited to removal of stockpiled material. Mining is <br />expected to continue to the northeast when operations resume in the spring. The main highwall was <br />approximately 50 feet high. A second highwall of approximately 20 feet in height was located in the <br />southwest section of the pit floor and contained the washed product stockpiles. <br />During the amendment process in 1998 to expand the gravel pit, the Operator committed to a maximum of <br />4700 lineal feet of working extraction face (highwall) with approximately 1000 feet of total vertical face and <br />the remaining area sloped between 2H:1V to 3H:1V. During the inspection, the highwall appeared greater <br />than 1000 feet in length and sloped between vertical and 1H:1V. Due to the snow cover, the Division was <br />unable to measure the highwall length and slope accurately. The Division will schedule a follow-up inspection <br />of the site in the spring of 2011 to address this concern. If the highwall is not in accordance with the approved <br />mining plan, the Operator may need to revise the permit or post additional bond to cover the reclamation <br />costs to reduce the highwall slopes. The Division will recalculate the bond following a complete inspection of <br />the site. <br />Reclamation Success: <br />No reclamation activities were observed during the inspection. Topsoil stockpiles were observed along the <br />southern boundary and north and east of the current highwall. Topsoil and overburden are stripped <br />approximately 30-50 feet ahead of mining operations each mining season according to the Operator. <br />Sediment Control: <br />The wash plant and sedimentation ponds were snow covered during the inspection, but appeared to be in <br />compliance with the approved mining plan. <br />Page 2 of 4