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OBSERVATIONS <br />PERMIT #: M -1977 -572 <br />INSPECTOR'S INITIALS: JLE <br />INSPECTION DATE: October 5, 2011 <br />This was a normal monitoring inspection of the Lamar East Pit; DRMS File No. M- 1977 -572, Operated by Valco, <br />Inc. This site is located at the north end of Lamar, Colorado in Prowers County. I, Jared Ebert of the Colorado <br />Division of Reclamation, Mining and Safety conducted the inspection. Tom Brubaker of Valco was aware of the <br />inspection but was unable to accompany me. <br />The site currently consists of four pit basins and a plant area. The plant area is located at the entrance to the <br />site. A large concrete building /processing facility is just east of the entrance. This building houses offices and <br />a crushing /cement plant. A concrete storage pad is located north of the processing facility. Another large <br />concrete structure appears to be on its side north of the processing facility. Old equipment and refuse is <br />stored inside this structure. A cinderblock /wooden shed is located in this area. The drag line is still standing <br />on the northern end of the plant area. A large amount of old equipment, metal and other trash /refuse is <br />stored and piled near the dragline tower and throughout the plant area. C.R.S. 34- 32.5 -116 (4) (e) requires <br />the Operator to dispose of all refuse in a manner that controls unsightliness or the deleterious effects of such <br />refuse. Trash and refuse will need to be removed from the site. This issue is cited as a problem at the <br />beginning of this report and will require corrective action to be taken by the Operator. <br />It appears the site was mined in four distinct pit basins. The first pit is located at the western end of the site <br />and currently consists of an open water pond. The side slopes of the pit down to the water line appear to be <br />set at approximately a 1.5:1 to 2:1 horizontal to vertical ratio. A pile of concrete rip -rap is stored at the <br />northern end of the pond. Annual weeds such as Russian thistle have established on the slopes of the pit. <br />Also Tamarisk trees have established throughout the majority of the pit slopes. Sand dropseed is one of the <br />primary native grass species that has established in this area. A portion of the eastern pit slope of the pond <br />consists of an area where it appears cement has been poured directly on the slope. The Division has observed <br />other operators in the vicinity wash out their cement trucks and dump the excess material and water onto the <br />banks of other excavations. In accordance with Rule 3.1.5 (9) if the operator intends to place structural fill <br />within a pit excavation, this material must be clean and inert as defined by Rule 1.1 (20). In order for concrete <br />to meet the definition of inert material, it must be in a hardened state for at least 60 days. Based on a <br />conversation with the Operator, it appears they desire to close up the site and commence reclamation. If this <br />is the case, the backfilling of un- hardened concrete must cease. Or, the Operator will need to file a TR to <br />update the mining plan to indicate how this structural fill will be allowed to harden for 60 days prior to being <br />used as backfill material. <br />The second pit basin is located just east of the first. It appears the Operator has either backfilled a large <br />portion of this area, or did not excavate to the same depth as the other pits. This area is relatively flattened <br />out and consists of wetland type vegetation and various stockpiles of material. A small pond is located at the <br />northeast corner of this area. An old mobile dragline is also located near the pond. The third and fourth pit <br />basins are similar to first basin in terms of slope grade and vegetation. However, it does not appear structural <br />fill has been placed in these basins. <br />Overall, it appears mining is complete at the site. On April 28, 2011 the Division received a letter from Mr. <br />Tom Brubaker of Valco, Inc. in regards to the exposed groundwater at the site. Mr. Brubaker proposes to <br />submit a technical revision to the reclamation plan to update the final configuration of the site and address <br />the exposed groundwater. The technical revision should also include a financial warranty estimate. At this <br />Page 2 of 7 <br />