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OBSERVATIONS <br />PERMIT #: M- 2000 -098 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: August 9, 2011 <br />This inspection was conducted as part of the normal monitoring program of the Colorado Division of <br />Reclamation, Mining, and Safety (Division) for permitted sites. The Monarch Quarry is a 112c permitted site <br />located east of Monarch Pass on the south side of Highway 50. The inspector met on site with Colorado Line <br />Company representative Dean Cunningham. <br />The Division had received a phone call from a concerned neighbor about potential impacts to the riverthat • <br />runs along the north edge of the permit area. The Division requested a written letter outlining the exact <br />nature of the issues. To date no written documentation has been received. The same neighbor contacted the <br />Division's Inactive Mines Program and the Colorado Department of Health. Attached to this report is a copy of <br />e -mail correspondence in regard to the matter between the Division and CDPHE. Their conclusion is that the <br />issues raised are probably natural and "warrants no further action ". <br />Further, the area is outside the permit boundaries and upstream of the mine. Since the site was due for an <br />inspection, the Division is opting to note current conditions to address any further inquiries. <br />The mine identification sign is posted at the mine office and complies with Rule 3.1.12. Permit boundaries are <br />marked by t -posts and berms that clearly delineate the affected areas. The inspector did not walk the entire <br />permit boundaries as the site is very large and steep grades. <br />Mining operations are currently ongoing. The operator is moving tailings material to a screener / separator to <br />extract limestone gravels. A loader was observed moving materials from the bench to the processing area. <br />The operation is consistent with the current mine plans. <br />The operator has an equipment and supply area set up on a bench near the sedimentation ponds. Fuel tanks <br />are in secondary containment. No spills or leaking fluids were observed. <br />The site has a historic rnill and other structures on site that are not part of the current mining operations. No • <br />current mine related debris or trash was observed. <br />Surface water impacts were noted as an issue by the neighbor. A Technical Revision was done in 2008 to <br />address modifications to the sedimentation and stormwater control measures on site. Without specific <br />information the inspector observed the following: <br />The approved sedimentation ponds are currently dry. Berms around the primary sediment pond direct <br />stormwater into the retention basin which has a designed, armored outflow. Visual observations note no <br />indications of an outflow even with the unusual wet winter. Vegetation and the southern bank of the river <br />have not been compromised by sedimentation or erosion. The operator's representative noted at the peak of <br />winter run -off the pond filled but never overflowed. <br />The secondary pond or catchment is along the eastern side of the access road and runs west to east along the <br />toe of the historic waste piles. The area is dry. Berms are intact and the designed overflow pipe is in good <br />order. No signs of erosion or sedimentation are noted in this area. <br />Page 2 of 3 <br />