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OBSERVATIONS <br />PERMIT #: M -1994 -121 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: August 12, 2011 <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Arturo Vasquez of 0 & A Stone LLC was also present for the inspection. The Vasquez Quarry No. 2 is <br />located 3.5 miles north of Lyons, Colorado. The site is permitted for 7.4 acres and the post- mining land use is <br />industrial /commercial. <br />The Division conducted this inspection in response to a citizen complaint which was received by the Division <br />on June 29, 2011. The complainant alleged that backfill material had been pushed from the permitted mine <br />site onto the complainant's property, which is adjacent to the Vasquez No. 2 Quarry. The complainant's letter <br />also stated the backfill material may be impeding the natural flow of stormwater runoff. <br />Gen. Compliance With Mine Plan: <br />The Mining Plan states overburden will be placed on the west and east sections of the permit boundary. <br />However, the Mining Plan does not specify that the overburden material would be placed within the natural <br />drainage area which bisects the site; nor does it address how this area will be reclaimed. In addition, the <br />Mining Plan calls for creating a highwall which is to remain upon the completion of reclamation. Mr. Vasquez <br />has informed the Division that his intention is to backfill the highwall with the overburden stockpiled in the <br />valley on the west side of the permit area. The Division encourages the elimination of highwalls whenever <br />possible and feels that Mr. Vasquez's plans for mining and reclaiming the site will lead to a more stable post - <br />mining land use. However, the Mining Plan, Reclamation Plan and associated maps will need to be revised to <br />reflect these changes. The change in the Mining and Reclamation Plans has been cited as a problem and will <br />require corrective action by the Operator; please see the first page of this report for additional information. <br />Signs and Markers: <br />The complainant's property is located immediately to the west of Mr. Vasquez's property. The Vasquez Quarry <br />No. 2 is situated in the southwest corner of Mr. Vasquez's property. The Operator has placed <br />overburden /waste rock in the valley located in the southwest corner of the property boundary. The Division <br />located surveyor's lathe near the southwest corner of the property. However, the Division could not <br />determine with certainty if the lathe delineated the property boundary; no permanent monuments such as <br />surveyor's pins could be located. It is clear that the overburden material is located very near where the <br />property boundary likely lies. The Mining Plan Map does not have any reference points which would allow the <br />Division to field locate the permit boundary. The Division provided the Operator with a copy of a map which <br />depicts the location of the permit boundary in relation to the property boundary. It will be the Operator's <br />responsibility to determine where the property and permit boundaries are located. At the time of the <br />inspection, the permit boundary was not delineated by monuments or markers as required by Rule 3.1.12; this <br />has been cited as a problem and will require corrective action by the Operator. The Division will conduct a <br />follow -up inspection once the corrective action has been complied with in order to verify that all mining <br />related activities have occurred within the permit boundary. <br />Hydrologic Balance: <br />The Division inspected the drainage area which has been partially blocked by the overburden material. <br />Stormwater that flows into the catchment area flows to the east and reports to the Stone Canyon Creek, <br />which then flows to the south towards Lyons, CO where it connects to the St. Vrain Creek. The Stone Canyon <br />Creek and the areas that drain into it are ephemeral in nature and only periodically exhibit surface flows. The <br />Page 2 of 5 <br />