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PERMIT #: M-2000-089 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: May 25, 2011 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Arthur Vasquez, representing the Operator, was present for the inspection. The Perdue site is <br />located 3.5 miles northwest of Lyons, Colorado. The site is permitted for 9.7 acres and the post-mining land <br />use is rangeland. <br />Financial Warranty: <br />The Mining Plan states the pit, or disturbed area, will be limited to one acre in size. The Division currently <br />holds a financial warranty in the amount of $12,500, which was calculated based on backfilling overburden <br />and replacing topsoil for one acre. Currently there is more than one acre which would require backfilling of <br />overburden and replacement of topsoil. In addition, the Division was unable to determine if the Operator has <br />affected land outside of the permit boundary due to missing boundary markers. As a result, the financial <br />warranty was not evaluated as a part of this inspection. The Division will conduct a follow up inspection once <br />the permit boundary has been surveyed and delineated and the financial warranty will be recalculated at that <br />time. <br />Hydrologic Balance: <br />The quarrying activities have created a small depression at the southeast corner of the permit area which is <br />capturing stormwater runoff. The Division observed several feet of water in the pit at the time of the <br />inspection. Mr. Vasquez stated the pit is periodically pumped after stormwater is captured. If stormwater is <br />contained on-site, it must infiltrate into the ground or be released to the natural system within 72 hours. <br />Impounding water longer than 72 hours will require the Operator to replace evaporative depletions through <br />the Office of the State Engineer. If stormwater is not being retained on-site or if it is discharged via pumping, <br />then the Operator will need to obtain a Stormwater Discharge Permit from the Colorado Department of Public <br />Health and Environment, Water Quality Control Division. The impoundment of stormwater for longer than 72 <br />hours has been cited as a problem; please see the first page of this report for the required corrective action. <br />Gen. Compliance With Mine Plan: <br />The majority of the 9.7 acre site has been disturbed by quarrying activities. Active quarrying is taking place in <br />the southeast corner of the site. According to Mr. Vasquez, recent quarrying activities have been limited to <br />removing pallets of flagstone and general maintenance of the site. As noted earlier in this report, the Mining <br />Plan states the pit, or disturbed area, will be limited to one acre in size. <br />The Operator has placed the majority of overburden in the northwest corner of the permit area. The approved <br />Mining Plan stated the overburden would be stored adjacent to active mining areas and would require a push <br />distance of 20 feet upon reclamation of the pit. As noted earlier in this report, the Division will recalculate the <br />financial warranty to account for the deviations from the approved Mining Plan. <br />Off-site Damage: <br />The Division observed a load-out/work deck area along the southeast corner of the site which appeared to be <br />outside of the permit boundary. The load-out/work deck area appears to have been created using overburden <br />and sandstone rubble. According to Mr. Vasquez, the disturbance was in place prior to the Succession of <br />Operators which transferred the permit from Randy Perdue to Ignacio Vasquez Sr. The Perdue site is <br />surrounded by historic mining disturbance; however, this area appears to have been disturbed in the more <br />Page 2 of 5