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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1984-094 <br />INSPECTION DATE: 22 Sept 2010 INSPECTOR'S INITIALS: DB2 <br />OBSERVATIONS <br />This was a routine inspection conducted by David Bird of DRMS, accompanied by Michael Pfister representing <br />the Operator. The site is located about one mile northwest of Fairplay on the west side of the Middle Fork <br />South Platte River. DRMS records list the commodities of interest as sand and gravel, but Mr. Pfister stated <br />that he also processes a small quantity of gold. The total permit area is 30.5 acres. Two post-mining land uses <br />are described for the site: rangeland and water storage. The Division holds a $33,114 bond for the site. <br />Mr. Pfister runs a number of businesses based from this property. Water trucks that service the new oil & gas <br />drilling activity in Park County are parked and maintained on site, and there is a large repository of tree slash <br />on the northwest part of the property that supports a mulching business. The operator employs a somewhat <br />complex water utilization and management system. There is standing water in one pit, but the source is not <br />ground water, rather it is water pumped from Sacramento Creek into the pit and used for material processing. <br />Several problems were noted at the site needing attention: <br />1) The sign at the mine entrance is faded and illegible. The operator needs to touch up the sign with some <br />fresh paint so that it is legible from the access road. This is cited as a problem on page 3 of this report. After <br />the improvements to the sign have been made, the operator must submit proof of the corrective action to the <br />Division in the form of a photograph of the refurbished sign. <br />2) The secondary containment of fuel storage on site is not up to standards. However, Mr. Pfister noted that <br />fuel tanks within the secondary containment facilities are currently empty, and the operator is in the process of <br />upgrading the fuel storage facilities at the site. The secondary containment is not formally cited as a problem in <br />this report, but the operator must include photographic evidence of fuel storage upgrades in the next annual <br />report due to the Division 17 July 2011. <br />3) There is a significant quantity of refuse within the permit area that creates a condition of unsightliness. Mr. <br />Pfister claims that he has made good progress in cleaning up the site over the past year and has received <br />positive comments from the community for his efforts. However, the Division would like to see continued <br />diligence toward the removal and disposal of the refuse. The refuse issue is cited as a problem on page 3, and <br />the operator will be given an extended period of time to come into compliance. <br />4) The financial warranty is inadequate. Based on the currently proposed post-mining land uses (rangeland <br />and water storage), the post-mining reclamation effort would require removal of a substantial quantity of <br />equipment, structures, refuse, and other debris. Demolition and disposal of these structures and equipment <br />must be included in the reclamation cost estimate. The operator may be able to reduce the reclamation cost <br />by changing the post-mining land use to Industrial/Commercial through submittal of an Amendment to the <br />permit. The inadequate financial warranty is cited as a problem on page 3. <br />I & E Contact Address <br />NAME: <br />OPERATOR <br />Richard G. Pfister <br />Sanborn Sand and Gravel dba Golden Cross A <br />STREET: 158 Glenwood Dr. <br />CITY/STATE/ZIP: Metairie. LA 70005-3912 <br />cc: F CE <br />F BLM <br />I' USFS <br />I' HW <br />F HMWMD <br />I' OSE <br />F WQCD <br />F OTHER (Michael Pfister)