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OBSERVATIONS <br />PERMIT #: M -1988 -052 <br />INSPECTOR'S INITIALS: JLE <br />INSPECTION DATE: July 15, 2011 <br />This was a permit transfer /succession of operators inspection (SO -01) of the Big R Pit; M- 1988 -052 operated <br />by Rick Hunt. This site is located approximately 16 miles northwest of Kiowa, Colorado in Elbert County. 1, <br />Jared Ebert of the Colorado Division of Reclamation, Mining and Safety conducted the inspection. Mr. Rick <br />Hunt accompanied me on the inspection. <br />This is 9.9 acre 110c operation for sand and gravel. It appears the Operator has mined in the wrong location. <br />According to the legal description provided in Exhibit A of the approved application, the site was to be located <br />in the SE X of the SW X of Section 28, T6S, R64W. However, mining occurred in the SW X of the SE X of <br />Section 28, T6S, R64W. The approved permit area is due west of where mining has occurred. The Division <br />mapped and measured the current affected area and mining disturbance using a Trimble GeoXT GPS unit. <br />Maps of the Division's finding is enclosed with this report. Based on the current approved mining and <br />reclamation plan map submitted with the original permit application, an estimate of the approved corner <br />markers for the site is depicted on the maps. Also enclosed with this report is a copy of the approved mining <br />and reclamation plan map depicting the approved permit area. This issue is cited as a problem at the <br />beginning of this report and will require corrective action to be taken by the Operator. <br />The current area of affected land was found to be 8.73 acres. The affected land consists of two pit areas, the <br />south pit area and the north pit area. The entrance road to the site is located on the eastern edge of the south <br />pit area connecting to a private road. Two highwalls exist in the south pit area. One highwall has a northern <br />and northeastern aspect. The height of these highwalls are approximately 15 to 20 feet tall with a 1:1 slope. <br />The other highwall is shorter in length and has a southern aspect and near vertical slopes. The topsoil stripped <br />from this area is located in piles along the boundary of the excavation, primarily along the northern boundary <br />of the south pit area. Several stockpiles of mined material are located thought the south pit area. <br />The north pit is where the most recent excavation has occurred according to Mr. Hunt. The north pit is <br />connected to the south pit by a small access road. This excavation is about 20 feet deep. The highwall has a <br />northern and western aspect and vertical slope. Topsoil stripped from this area is located in a large berm <br />along the northern boundary of the pit. Several stockpiles of mined material and land affected by truck and <br />equipment traffic is located to the west of the excavation in the north pit area. <br />According to the current approved mining plan the Operator was only approved to affect 3 acres of land at a <br />time. As indicated above, it appears 8.73 acres has been affected by the mining operation. Given this, the <br />financial warranty for the site does not appear to be adequate. Based on the Divisions estimate the financial <br />warranty will need to be increased to $18,642.19. The Division will send a separate surety increase notice to <br />the Operator. The Operator will have 60 days from the date of that notice to post the additional financial <br />warranty. <br />Page 2 of 4 <br />