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PERMIT #: M-1976-051 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: May 11, 2011 <br />OBSERVATIONS <br />This pre-operation inspection was conducted in response to the Amendment application (AM5) submitted by <br />the Operator on December 27, 2010. Approval of AM5 would add 22.4 acres to the affected area, for a total <br />of 87.5 permitted acres. Fred Duckels and Bruce Humphries, representing the Operator, were present during <br />this inspection. Photographs are included at the end of this report in order to illustrate some of the conditions <br />observed during this inspection. <br />The site is located approximately six miles west of Steamboat Springs and accessed from Highway 40. An <br />adequate mine identification sign was noted at the entrance to the property. <br />Mining and reclamation at the site have progressed in a northerly direction. Most of the permitted area, <br />excluding the active cut of approximately 3.4 acres has been reclaimed to rangeland. Mining of the proposed <br />expansion area will progress in a northeasterly direction. <br />The active pit had been excavated to a depth of approximately thirty-five feet. Approximately 10-15 feet of <br />overburden overlies approximately 10-15 feet of gravel in this area. The gravel overlies a black shale bedrock. <br />During mining, the lower 6-12 inches of gravel is left in-situ, according to the Operator. <br />The area had received a significant amount of rainfall prior to this inspection. Some water was observed on <br />the pit floor, but was not observed seeping through the highwall. This water appeared to be from the recent <br />snowmelt and rainfall events. A ditch located along the base of the highwall directs water on the pit floor to <br />the southwest corner of the pit. A pump was located in the southwest corner of the pit, but did not run during <br />this inspection. The Operator stated that, when necessary, stormwater/snowmelt captured in the pit is <br />pumped into a settling pond located just south of the pit. The settling pond did contain water during this <br />inspection, up to a depth of approximately one foot. <br />The proposed expansion area lies adjacent to the north side of the active cut. If AM5 is approved, mining and <br />reclamation will progress northeasterly from this point. This area consists of gently rolling terrain covered by <br />sage brush and grasses/forbs. A Swale exists along the north side of the proposed expansion area that drains <br />to the southwest. Water in this swale was no more than six inches deep during this inspection. <br />Observations regarding Harry Brown's well <br />During the initial comment period, the Division received a formal objection to the Operator's Amendment <br />application from an adjacent landowner, Harry Brown. The complainant believed that mining and reclamation <br />operations at the site had affected the flow of water to his property. The complainant's property lies directly <br />west of the Bettger Pit site, approximately 250 feet west of the affected area boundary, and approximately <br />750 feet southwest from the southwest corner of the proposed expansion area. It was determined that the <br />problematic well on Mr. Brown's property was hand dug at some time around 1915 by a former landowner. <br />This well was located just north of the Brown's home. The ground elevation at this location is approximately <br />6,728 feet above sea level. The water level observed in this well during this inspection was approximately five <br />feet below the top of the well. The well is approximately twenty feet deep. A geologic completion log for this <br />well is not available. <br />Page 2 of 3