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OBSERVATIONS <br />PERMIT #: M- 1977 - 002 -HR <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: June 29, 2011 <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Dustin Anderson of Colorado Lien Company was also present for the inspection. The Munroe <br />Gypsum Quarry is located approximately 6 miles north of Livermore, Colorado. The site is permitted for 240 <br />acres with an affected area of 70.7 acres. The Operator has committed to a maximum disturbed area of 9.9 <br />acres. The post- mining land use is rangeland. <br />Financial Warranty: <br />The Division currently holds a financial warranty in the amount of $34,800.00. The Division conducted a bond <br />calculation and found that the financial warranty is sufficient to reclaim the disturbed area. <br />Gen. Compliance With Mine Plan: <br />The Munroe Gypsum Quarry is divided into four quarry areas. Currently the Operator is mining within the <br />southernmost quarry, which is located south of the main access road. The Operator typically blasts material <br />from the face of the highwall once per year. The material generated from the blast is enough supply demand <br />over the course of the year. No mining was taking place during the inspection; no equipment was present on <br />site. Mining in the southernmost quarry is progressing to the east. The highwall is approximately 700 feet in <br />length and ranges between 15 -25 feet in height. Approximately 1.6 acres of the active mining area have been <br />backfilled and graded to 3H:1V or flatter. No portion of the southern quarry has been reseeded. The disturbed <br />area encompasses approximately 5.5 acres, this excludes any portion of the mine site which has been graded <br />and seeded. <br />Revegetation: <br />The Division inspected the quarry immediately north of the main access road. Mining is no longer taking place <br />in this area and the quarry has been fully reclaimed. This portion of the mine site was seeded at various times <br />between 2000 and 2009. Vegetation is beginning to establish throughout the area; however, several more <br />growing seasons will likely be required before this quarry is eligible for release. <br />The revegetated hillside was contoured so that stormwater runoff would flow across the hill. The Division did <br />not observe any erosion; the reclaimed area appears to be stable. <br />Signs and Markers: <br />The Division observed that there was no posted permit sign at the site entrance. In addition, the boundary of <br />the affected area was not delineated with monuments or other markers. The lack of a permit sign and <br />boundary markers was cited as a problem and will require corrective action by the Operator; please see the <br />first page of this report for additional information. <br />This concluded the inspection. <br />Page 2 of 4 <br />