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PERMIT #: M- 2011 -026 <br />INSPECTOR'S INITIALS: KAP <br />INSPECTION DATE: July 27, 2011 <br />OBSERVATIONS <br />This inspection was conducted as a pre - operational inspection for the proposed mining operation. Present at <br />the inspection were Keefer Rader, Keyah Grande Lodge and Elk Ranch, Sean Moore and Clinton Casey, SME, <br />and Kate Pickford, DRMS. <br />The application proposes operations of a sand and gravel operation consisting of 34.55 acres which is located <br />well within the Keyah Grande Ranch. The parcel to be mined is located adjacent to the Devil Creek drainage <br />and contains a pond that was a result of pre -law mining. At the time of this inspection, some extraction of <br />gravel was taking place. The material that had been mined previously was used to upgrade roads within the <br />ranch boundaries. <br />Reclamation of the proposed permit area is already covered under an Army Corps permit for wetland <br />mitigation. The operator is also planning to do work within the banks of Devil Creek, adding sinuosity to the <br />channel and armoring one of the meanders to ensure the creek stays within the channel. This work is also <br />covered under the Corps permit. <br />The Division will approve the application for a mining permit at the site. The bond amount is minimal due to <br />the existing bond with the Army Corps for the work proposed under their permit. <br />age 2 of 4 <br />