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PERMIT #: M-2006-032 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: May 5, 2011 <br />OBSERVATIONS <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 representative <br />Shauna Hovey and permit holder Margaret Hale. The Bellgardt Pit is a 36 acre, 112c permitted site located east of <br />Montrose, Colorado. The purpose of the inspection was to note current conditions related to an upcoming issue with <br />the financial warranty and to discuss potential changes the permit holder is contemplating in regard to final reclamation. <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 entrance to the site as it enters the permit access point. Permit boundaries are marked by t-posts <br />and fencing that clearly marked the affected areas. <br />The mine shows some signs of recent activity. The inspector observed a front-end loader and processed materials on <br />site. Minor highwalls were noted along the west side of Area 1. The highwalls will be eliminated when excavation is <br />finished as the area will be day-lighted out to the drainage. <br />No reclamation is noted in the disturbance area. The inspector and operator representative discussed the possibility <br />reclaiming slopes and reducing highwalls to lower the reclamation liability for the site. The north slopes are very close <br />to being mined out or have already been done. Some minor earth work could finish off the area and it should be <br />reclaimed. <br />No groundwater issues were observed. No issues were observed with sedimentation or erosion controls. No noxious or <br />problematic weeds were observed. <br />The permit holder discussed the possibility of changing the final reclamation. The purposed plans would change the <br />post mine land use from rangeland to general agriculture. The plans would be to develop the site as corrals, a feed lot, <br />and support buildings. The Division has no issue with the proposed plans. The change will have to be addressed as an <br />amendment since it changes the post mine land use significantly. <br />No problems or violations were noted or observed in regard to the mine or reclamation plans at this time. Based on <br />current conditions the financial warranty of $50,213.00 calculated in 2006 appears to be sufficient to reclaim the site. <br />An update will be done separately if an amendment is submitted or in the near future as warranted. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, and Safety, <br />Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. <br />Inspection Contact Address <br />Shauna Hovey <br />3001 N. Townsend Ave. <br />Montrose, CO 81401 <br />Page 2 of 3