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OBSERVATIONS <br />PERMIT #: M- 2010 -036 <br />INSPECTOR'S INITIALS: BMK <br />INSPECTION DATE: February 28, 2012 <br />1) The Division conducted an inspection of the site to verify current disturbance and verify the required <br />warranty for the Succession of operation application. <br />2) Mr. Breck Vassios, Crystal Springs Ranch Inc. the applicant was present at the time of the inspection. <br />3) The site is a small, 9.9 acres 110 permit in the middle of an ephemeral gulch, located approximately 8 <br />miles south and one mile west of Haxtun Colorado. Mr. <br />4) The entire disturbed area was walked and inspected Evidence of active mining was noted at the time of <br />the inspection along the North west side of the permit. A front end loader and a small grader were <br />noted parked along the east side of the active mining area. Operator was notified to stabilize all growth <br />medium if it is not used during the contemporaneous reclamation of the site. He agreed to notify his <br />operator to seed all growth medium that will not be utilized within 180 days. <br />5) Permit sign and boundary markers properly posted. Approximately 4 acres is disturbed. The current <br />warranty in the amount of $23,850.00 is more than adequate to cover the cost of reclamation. Mr. <br />Vassios has 60 days to submit the replacement warranty so the Division can finalize the approval of the <br />succession application. During the inspection Mr. Vassios inquired about expanding the permit. He was <br />informed of the two options. If the land is contiguous, a conversion application to a 112 can be <br />submitted for the existing site. If the land is not contiguous then the operator can apply for either a <br />110 permit for another 9,9 acres or a 112 permit for anything over 9.9 acres. He said he will contact the <br />local consultant and explore his options. <br />Page 2 of 4 <br />