2012-02-24_INSPECTION - M1992069

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OBSERVATIONS PERMIT #: M -1992 -069 INSPECTOR'S INITIALS: PSH INSPECTION DATE: February 10, 2012 The 83 Joint Venture Resources site was inspected by Peter Hays with the Division of Reclamation, Mining and Safety (Division) as part of the Division's monitoring inspection program. Mrs. Connie Davis with Aggregate Industries (Al) was present during the inspection. The site was last inspected by the Division on November 10, 2010. The Division approved Technical Revision No. 7 on August 22, 2011. The revision updated and clarified the reclamation plan at the site to reflect the revised lake configuration and removed the tree planting requirement from the approved reclamation plan. Three topics were discussed and /or inspected by the Division during the inspection: • Compliance with the Division's April 30, 2010 letter to mining operations with exposed groundwater • Repair of the damaged slopes caused by the recent flooding at the site • Observation of the reconstructed Boyd- Freeman ditch Exposed Groundwater Aggregate Industries, as the Permittee, is responsible for the long -term groundwater augmentation responsibility at the site. As discussed in the letter from Al to the Division dated December 28, 2011, the plan was to use 240 shares of Boyd Freeman Ditch and obtain additional water rights necessary to cover all water obligations associated with the reclaimed open ponds. Additionally, Al stated the Division of Water Resources required as a condition of approval of AI 2011 combined substitute water supply plan that an application for a permanent plan of augmentation be filed with the Water Court by December 31, 2011. Al therefore proposed to either provide to DRMS verification of 83 Joint Venture filing of the water court application or submit for a bond recalculation by December 31, 2011. These options were not completed by Al by the deadline. During 2011, the 83 Joint Venture Boyd- Freeman ditch shares were sold to the City of Greeley (City). The City has acknowledged Al right to continue to use the ditch shares in its temporary substitute water supply plan. However, since conveyance of 83 Joint Venture water rights to the City did not include conveyance of the land for which the permanent plan of augmentation is required, the City has stated the shares will not be available to Aggregate Industries for its responsibility to implement and comply with the requirements for the post mining permanent augmentation plan for the site. Because the Boyd Freeman ditch shares are no longer available for Aggregate Industries to fulfill its obligation to provide a permanent plan of augmentation for the site, Al stated they would review their options for either backfilling the site to cover exposed ground water or installing a clay liner or slurry wall that meets DWR requirements for preventing ground water exposure. Since Al has already mined and reclaimed the site in accordance with the DRMS permit and the Lease with 83 Joint Venture, Al stated they would be seeking to transfer the permit back to 83 Joint Venture through a Succession of Operator, so that 83 Joint Venture may conduct any additional reclamation work necessary to achieve compliance with DRMS and DWR requirements. Upon obtaining 83 Joint Ventures decision, the appropriate bond recalculation and financial warranty will be submitted to DRMS. Al has already submitted its 2012 South Platte combined substitute water supply plan renewal request to DWR to include coverage of all water obligations associated with the reclaimed open ponds at the F Street site and will continue to maintain the site in this temporary supply plan until such time as the site is covered under an alternative plan approved by DWR. Page 2 of 7