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OBSERVATIONS <br />PERMIT #: M -1986 -002 <br />INSPECTOR'S INITIALS: THM <br />INSPECTION DATE: August 2, 2011 <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division <br />of Reclamation, Mining and Safety (DRMS) of possible unpermitted activities. On August 1, 2011 the Division <br />was notified by Peter Kearl of United Companies of Mesa County (United) about a possible unpermitted <br />activity, in the form of a haul road constructed by United, taking place off of Highway 141, 15 miles southeast <br />of Grand Junction, Colorado. Peter Kearl of United was present during the August 2, 2011 inspection <br />Mining related disturbance observed during the inspection consisted of a constructed access road that accessed a <br />permitted site that was being mined by United during the inspection. The permitted site that United was mining <br />is held by Whitewater Building Materials Corporation Permit No. M- 1977 -129. The permitted land is owned <br />by United and is to be included in a permit conversion submitted by United to expand the existing 110c <br />operation Permit No. M- 1986 -002 permitted for 8.4 acres to a 112c which is proposed to include 153.04 acres. <br />United's permit conversion is currently being reviewed by the DRMS. The access road was approximately 30 <br />feet wide by 2,400 feet in length, with some portions of the disturbance being up to 80 feet wide. It is estimated <br />that 2 -3 acres were disturbed at the time of the inspection. <br />The Division believes this is in violation of the Colorado Land Reclamation Act for the Extraction of <br />Construction Materials, C.R.S. 34- 32.5 -101 et. seq., and specifically C.R.S. 34- 32.5- 109(1) as amended for <br />failure to obtain a Mined Land Reclamation Board Reclamation Permit prior to engaging in a new mining <br />operation. A hearing is scheduled to address this issue before the Mined Land Reclamation Board on <br />September 14 -15, 2011. Notice of the hearing was mailed under separate cover. <br />The Division is currently reviewing a conversion application for permit M- 1986 -002 and the majority of the <br />constructed road appears to fall within the proposed additional permit area. However one portion of the road <br />appears to not be located within the proposed permit area. United must submit an "as- built" of the road <br />observed during this inspection to determine whether or not a conversion application amendment is required to <br />expand the proposed permit area to encompass all disturbance observed. The "as- built" shall be submitted as <br />soon as possible but no later than August 29, 2011. The permit application currently being reviewed cannot be <br />approved without confirmation of the access road location. <br />No evidence of sedimentation or offsite erosion was observed during the inspection <br />Photos that show the conditions observed during the August 2, 2011 inspection are included at the end of this <br />report. <br />Responses to this inspection report should be directed to Travis Marshall at the Division of Reclamation, <br />Mining and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado <br />81501, phone no. 970 - 241.2042. <br />Page 2 of 4 <br />