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PERMIT #: M-2001-035 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: March 16, 2011 <br />OBSERVATIONS <br />This inspection was conducted as part of the normal monitoring program of the Colorado Division of <br />Reclamation, Mining, and Safety (Division). Division inspector Russ Means was accompanied by ACA Products <br />representative Michael Coleman. The Trout Creek Pit is a 91 acre, 112c permitted site located southeast of <br />Johnson Village, Colorado. The last inspection of the site was a pre-operational inspection for Amendment <br />AM01 in September of 2007 to add in 20 acres of BLM lands. <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule <br />3.1.12. The sign is located at the entrance to the site as it enters the permit access point. Permit boundaries <br />are marked by t-posts, and fencing that clearly marked the affected areas. The inspector did not check the <br />eastern boundary markers as the current disturbance is well short of those limits. <br />The mine has been active. The pit has two sources of material being mined. An alluvial fan of flood debris <br />materials and a rock quarry operation for rip-rap materials. Within the permit area processed materials <br />stockpiles, landscaping boulders, and rip-rap material were noted. Work has progresses on the quarry <br />operation but no current evidence of work with the other materials is noted. Excavation was observed <br />progressing towards the east and which is consistent with approved mine plans. 3 highwall benches are 10 <br />feet high with a 6 to 10 foot catch bench as required. The mine plan mentions working from top to bottom <br />whereas the current method appears reverse. The inspector encourages the operator to review the plans and <br />make adjustments accordingly. Reclamation issues may arise if the current methods are used in relation to <br />slope stability. Since the disturbance is not large this issue is not listed as a problem currently. Total linear <br />exposure is approximately 200 feet. The inspector noted equipment at the site. The overall estimated <br />disturbance acreage-of the pit area is approximately 7 acres which includes stockpile footprint areas. The 20 <br />acre parcel of BLM lands incorporated into the permit in 2007 have not been disturbed to date. <br />The no reclamation is noted in the current disturbance area which is not an issue. The inspector and operator <br />representative discussed the entire permit acreage. There are portions of the current permit which were part <br />of an older permit area. This area is fully reclaimed back into productive agricultural lands. it may be in the <br />operator's interest to release this area so that no further reclamation liabilities are incurred. The plans for the <br />area in conjunction with current activities are unclear so the operator will need to look at their long range <br />goals. <br />No groundwater issues were observed. An irregular flow from irrigation water in an unconfined ditch cuts <br />across permit area. The water heads towards the agricultural fields to the south and disappears. Work in the <br />area does not appear to impact the water quality as it is sandy, rock granular type of materials. No issues <br />were observed with sedimentation or erosion. <br />The financial warranty was done in 2007 as part of the amendment process. It is noted that the amended area <br />disturbance was added to the bond calculation amount from 2001 but not completely updated. The estimate <br />covers approximately 50 acres but documentation of how the cost in 2001 was derived is sparse. The <br />inspector will update the reclamation liability estimate and address the issue through separate cover later. <br />No problems or violations were noted or observed. <br />Page 2 of 6