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OBSERVATIONS <br />PERMIT #: M -1974 -015 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: November 28, 2011 <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Anne Johnson and Casey Felmlee of Lafarge West, Inc. and Claire DeLeo and Matt Adeletti of <br />Boulder County were also present for the inspection. The Lyons Pit is located 2 miles southeast of Lyons, <br />Colorado. The site is permitted for 678 acres and the post- mining land use is recreation /developed water <br />resource. <br />The Division received a request for an acreage reduction on September 9, 2011. The acreage reduction would <br />reduce the permit acreage from 678 acres to 610 acres. The Division sent out notices regarding the reduction <br />request to the owners of record of the affected land, the Boulder County Commissioners, the Division of <br />Water Resources and to the Longmont Soil Conservation District on September 19, 2011 as required by <br />Construction Materials Rule 4.17.2. The Division did not receive any written objections to the acreage <br />reduction request. <br />Availability Of Records: <br />There was no mining taking place during the inspection; no equipment was onsite. According to the Annual <br />Reports submitted to the Division, weed management has been the only ongoing activity for the past several <br />years. This has been cited as a problem and will require corrective action by the Operator; please see the first <br />page of this report for additional information. Construction Materials Rule 1.13.5 states that if an Operator <br />plans to, or does, temporarily cease production of the mining operation for 180 days or more, the Operator <br />must file a Notice of Temporary Cessation in writing, to the Division. The Notice of Temporary Cessation for <br />the initial period shall include the following: <br />a) The date of cessation <br />b) The reasons for non - production or cessation of the mining operation <br />c) A plan for resumption of mining <br />d) The measures to be taken to comply with reclamation requirements and /or other activities related to the <br />performance standards of Rule 3.1 while the mine is in Temporary Cessation <br />e) Demonstration that the existing Financial Warranty is adequate to cover reclamation <br />f) A fee of $144 made payable to the Division of Reclamation, Mining and Safety <br />Financial Warranty: <br />The Division currently holds a financial warranty in the amount of $1,684,500, which has been determined to <br />be adequate to complete reclamation of the site. <br />The Division inspected the following four parcels of land and confirmed that mining has not occurred on them: <br />1) Weng Parcel (Lot B) - 4.1 acres: <br />This parcel of land is located immediately west of the main access road and is owned by Tom and Vicki Fox. <br />This is a residential site that contains several historic houses which are currently occupied. <br />2) Parcel #1A - 41.9 acres: <br />This parcel of land is located immediately east of the main entrance. Boulder County owns the property and <br />leases it for grazing. <br />Page 2 of 5 <br />