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PERMIT #: M- 2000 -089 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: August 31, 2011 <br />This concluded the inspection. <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Arturo Vasquez, representing the Permittee, was also present for the inspection. The Perdue site is <br />located 3.5 miles northwest of Lyons, Colorado. <br />Signs and Markers: <br />On May 25, 2011, the Division conducted an inspection of the Perdue site and found the northeast and <br />southeast boundary markers were missing. The purpose of this inspection was to confirm that the missing <br />boundary markers had been replaced and that they accurately reflected the extent of the disturbed area. The <br />northeast and southeast boundary markers were located and their locations, along with the other two <br />boundary markers, were surveyed using a Trimble GeoXT GPS unit. The area delineated by the boundary <br />markers is 12.2 acres and the site is permitted for 9.7 acres. Based on this information, one or more of the <br />boundary markers is in the wrong location. <br />Off -site Damage: <br />The Division traversed the perimeter of the Perdue site with the Trimble GeoXT GPS unit in order to survey the <br />extent of the disturbed area. The disturbed area was determined to be 11.6 acres, which exceeds the <br />permitted acreage by 1.9 acres. Based on the findings of this inspection, the Division has reason to believe the <br />Operator is in violation of C.R.S. 34- 32.5- 116(4)(i) for failure to protect areas outside of the affected land from <br />slides or other damage occurring during the mining operation or reclamation. The possible violation will be <br />scheduled for the October 12 -13, 2011 Mined Land Reclamation Board Hearing. Notice of such hearing will be <br />sent under separate cover. <br />Page 2 of 3 <br />