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OBSERVATIONS <br />This inspection is part of the normal monitoring program established by the Colorado Division of Reclamation, <br />Mining, and Safety (Division). The H/S Properties Gravel Pit is a 110c permitted site located off Highway 50 <br />and Banner Road, north of Olathe, in Montrose County. <br />The mine identification sign and affected area boundary markers are not in place and in compliance with Rule <br />3.1.12. However, the permittee has not begun any disturbances since permitted so it is not considered a <br />formal problem. The permittee is advised, that even thought the site has not begun mining a sign at the <br />approved entrance to the site needs to be posted that clearly states the name of the operation, permit <br />number, and contact information for the permittee. Permit boundaries will need to be clearly marked in the <br />future prior to any disturbance as well. <br />As noted above the site was permitted but has not begun active mining. The inspector walked the site and did <br />not observe any indications of disturbances. <br />The Annual Report submitted on 9/26/2011 reflects current site conditions and activities. <br />The Division holds a $21,973.00 reclamation bond for the site. Discussions with the permittee representative <br />indicate there are no immediate plans to begin mining due to the economy. The inspector would like to <br />advise the permittee that it may be possible to reduce the reclamation bond down to a minimal amount if so <br />desired. A Technical Revision to the mine plan could be submitted to phase the operation. The first phase <br />could be for an acre, and have the bond reduced to reclaim that 1 acre. The approval would stipulate that <br />prior to mining or disturbance beyond the 1 acre the permittee would have to notify the Division 30 days in <br />advance so that the reclamation bond could be recalculated at that time. Otherwise, obviously, the current <br />bond held is more than sufficient to cover reclamation. <br />The inspector observed no problems or violations at this time. <br />Inspection Contact Address <br />H/S Properties <br />50 Heinz St. <br />Delta, CO 81416 <br />PERMIT #: M- 2007 -042 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: January 19, 2012 <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, <br />phone no. 970 - 241 -1117. <br />Page 2 of 2 <br />