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PERMIT #: M -1977 -129 <br />INSPECTOR'S INITIALS: THM <br />INSPECTION DATE: June 2, 2011 <br />OBSERVATIONS <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division <br />of Reclamation, Mining and Safety. The Pit 500 is located off of Highway 141 approximately 0.5 miles south <br />of Whitewater, Colorado. The Pit 500 is a multi phase operation that consists of two separate locations that are <br />divided by the Gunnison River. The purpose of the June 2, 2011 inspection was to assess the success of the <br />reclamation conducted in both Phase 2 — Part A and Stage 2 — Part B to and determine if the reclamation was <br />completed according to what is required in the approved reclamation plan. Edward and Mark Gardner of <br />Whitewater Building Materials Corp. and Dale Brandon the landowner of the majority of Phase 2 — Part A all <br />accompanied the inspector during the inspection. <br />The mine identification sign and the affected area boundary markers are in place and in compliance with rule <br />3.1.12. The signs are located on a post at the main entrance to both locations. The permit boundaries are <br />comprised of fences, posts and geological barriers that are easily identifiable. <br />Phase 2 — Part A — This portion of the permitted area belongs to Dale Brandon. All sloping appeared to be no <br />steeper than the required 3H:1V. The site was revegetated in the fall of 2009. The success of the vegetation <br />near the water's edge was very good and appeared to be less successful farther from the lake shore. Yellow <br />sweet clover along with a variety of perennial grasses was observed in the vicinity of the lake located in Phase <br />2. Some bare patches were observed where the soils appeared to be alkaline. A few noxious weeds were <br />observed including cheat grass, tamarisk and Russian knapweed. Both the operator and the landowner are <br />aware of effective methods of control for both the tamarisk and knapweed, therefore this is not seen as a <br />problem due to the operator's commitment and yearly documentation of weed control efforts in the annual <br />reports. Backfilling, grading and some seeding has been completed in the west arm of Phase 2 - Part A. The <br />southernmost portion of the west arm was described as being a future building site for a horse arena. According <br />to the approved reclamation plan only two building sites exist in Phase 2 which were approved under TR -04. If <br />the operator / landowner wish to incorporate the approximate 5.0 acre area as a designated building site for a <br />horse arena a technical revision to the reclamation plan must be submitted and approved prior to construction. <br />Also, if a technical revision is submitted and approved, if the arena is not built prior to release of Phase 2 the <br />area must be held to the same re- vegetative requirements as the rest of Phase 2. Wave erosion was observed <br />along the east /northeastern shore of the lake, this is not seen as a problem at this time in hopes that the shore <br />line will eventually come into natural stabilization over time, however, some maintenance may be required in <br />the future. Overall, the reclamation success observed during the inspection is nearing completion but until <br />adequate revegetation is established the site will not be eligible for release. The area around the lake may <br />require one to two more growing seasons and the west arm may require three to four more years to establish the <br />required vegetation. <br />Stage 2 — Part B — This Portion of the permitted area belongs to James McCurter. All sloping appeared to be <br />no steeper than the required 3H:1V. The majority of the area appeared to have adequate topsoil except for <br />where an inlet pipe was recently installed / maintained located at the southwest corner of the lake. The area <br />adjacent to the inlet pipe at the southeast corner will require additional revegetation efforts due to the recent <br />disturbance observed. An inlet pipe was also observed near the southeast corner of the lake that will require <br />additional armoring to obtain final stabilization. Also, it appeared that the addition of water from the inlet <br />structures observed during the inspection is having a negative impact on the shoreline of the lake. A few <br />examples of the negative impact of the fluctuating water level include the absence of vegetation on the 3 -4 foot <br />section adjacent to the shoreline immediately above the waterline and the dead or dying cottonwood trees <br />located on the northern most shoreline that appear to be flooded. The Division believes that the addition of <br />Page 2 of 4 <br />