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OBSERVATIONS <br />PERMIT #: M- 2005 -002 <br />INSPECTOR'S INITIALS: CBM <br />INSPECTION DATE: January 18, 2012 <br />1) The Division conducted an inspection of the site on January 18, 2012, to verify the required Financial <br />Warranty needed to reclaim the current disturbance as approved in the reclamation permit. The <br />Division received a letter from the warranty company that the current warranty in the amount of <br />$22,250 .00 for the site was canceled effective January 31, 2012. The Financial Warranty is based upon <br />estimates as to the cost of reclamation of the affected area as approved in the post mining land use. <br />Rule 4.1(7) states, "Financial Warranties shall be maintained in good standing for the entire life of any <br />permit issued under the Act and these Rules ". The fact that the financial warranty is not in good <br />standing is cited as a possible problem on page one of the inspection report. <br />2) The site is a small sand and gravel operation located approximately 35 miles east of Colorado Springs. <br />Present during the inspection was Mr. Dave Schuler the operator. <br />3) The site was permitted as part of a Mined Land Reclamation Board (MLRB) order for mining without <br />first obtaining a mineral extraction permit. The permit number associated with the MLRB Violation # <br />MV- 2004 -063 was M- 2004 -069. When the permit application was submitted, a new permit # M -2005- <br />002 was assigned to the site. The Division determined a financial warranty in the amount of $22,250.0 <br />to be adequate to reclaim the 9.9 acre site, as approved in the reclamation plan. <br />4) As reported in the April 4, 2011 inspection report, since the permit was issued in 2005, the operator <br />did not affect additional areas. All the disturbance in place is what was already affected prior to <br />obtaining a reclamation permit. According to Mr. Schuler, because of the difficulty of obtaining a use <br />by special review permit from El Paso County, he has been unable to extract the gravel as approved. <br />5) The entire affected area was measured using a GPS unit, a range finder and an Abney Level. A total of <br />0.672 acres is currently affected, as of January 18, 2012. The high wall measured 118 lineal feet in <br />length, with an average of 5 feet of high wall extending east to west. Top soil stock piles from the <br />current affected area are properly stored along the west side of the permit area and were found <br />stable. <br />6) The financial warranty required to reclaim the current affected area is calculated at $3071.99. <br />Attached is the detailed financial warranty calculation for the affected area. <br />7) Permit sign and boundary markers were properly posted. <br />Page 2 of 4 <br />