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PERMIT #: M-1995-057 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: May 18, 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 met with operator representative, <br />Deb Rudibaugh, prior to inspecting the site. The Rudibaugh Pit is a 110c permitted site located north of Parlin, <br />Colorado. The purpose of the inspection was to confirm site conditions and disturbances as related to the <br />pending financial warranty cancellation. <br />During the pre-inspection visit Mrs. Rudibaugh was given the paperwork for a succession of operator (SO). <br />The current permit is under Rudi Rudibaugh's name. The SO must be done so that any replacement bond is in <br />the correct permit holder's name. Mrs. Rudibaugh was asked to please provide a copy of Mr. Rudibaugh's <br />death certificate and documentation as the executor of his estate so that the paperwork can be processed as <br />quickly as possible. The SO is listed as a problem with a corrective action date at the end of this report only <br />because it is necessary to ensure the replacement bond will be in the proper name for the permit. <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. The inspector notes <br />the sign is badly weathered. A replacement sign should be posted prior to the next inspection to avoid a <br />possible problem being cited. Permit boundaries are marked by t-posts and fencing that clearly marked the <br />affected areas. <br />The mine has been active in the past year. The inspector observed processed materials on site, a loader, and <br />excavator. Stockpiles appear to have had some materials removed in the past year. A small excavated pit is <br />present. However, no highwalls were observed and slopes are 2:1 or better. <br />No groundwater issues were observed. No problems were observed with sedimentation or erosion controls. <br />No problems or violations were noted or observed in regard to the mine or reclamation plans at this time. <br />As in previous inspections, the inspector cautions the permit holder about the use of the permitted area for <br />junk and equipment storage. The use of the permit area for such purposes is considered a deleterious effect. <br />The Division must bond for the removal of such materials as part of the reclamation liabilities. At this time the <br />inspector is not listing the issue as a problem but as an issue of concern. Future liability estimates may have to <br />increase the amount necessary to cover the removal of said debris and / or materials if it increases beyond <br />what is noted currently. <br />The financial warranty of $11,574.00 is set to be cancelled effective July 13, 2011. The permitee must submit <br />a replacement bond by June 13, 2011 to avoid enforcement action by the Division. If the enforcement action <br />is undertaken an update is required which may cause the amount to increase. The pendinp, financial warranty <br />cancellation is noted as a problem at the end of this report. The final date for submission of replacement <br />bond is noted as the resolution date. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, <br />phone no. 970-241-1117. <br />Page 3 of 3