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OBSERVATIONS <br />PERMIT #: M -1974 -015 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: March 13, 2012 <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Julie Mikulas of Martin Marietta Materials, Inc. was also present for the inspection.. The Lyons Pit is <br />located 2 miles southeast of Lyons, Colorado. The site is permitted for 610 acres and the post- mining land use <br />is recreation /developed water resource. <br />On January 3, 2012, the Division received a Succession of Operators Application Package requesting a transfer <br />of the Reclamation Permit from La Farge West, Inc. to Martin Marietta Materials, Inc. On February 27, 2012, <br />the Division approved the succession of operators for this operation. The successor operator chose not waive <br />their right to a 30 day processing time to allow the Division to recalculate the financial warranty requirements <br />and instead submitted a replacement financial warranty in the amount of $1,684,500. The purpose of this <br />inspection is to verify that the current financial warranty amount is sufficient to complete reclamation at the <br />site. <br />The Lyons Pit entered into Temporary Cessation status on December 6, 2011. The new Operator is assessing <br />the site and is developing a plan to resume active mining operations. The site consists of four lakes, with two <br />additional lakes planned for the southern end of the site. According to the Division's records, the lakes are <br />unlined and are hydraulically connected to the surrounding alluvial aquifer. During the inspection, the <br />Operator indicated a slurry wall was constructed around Lake No. 4. The post- mining land use of developed <br />water resource was approved under Amendment No. 6. According to Exhibit F -3 Reclamation Contours Map, a <br />slurry wall was to be constructed around Lake No. 5 in Phase III. As noted earlier in the report, Lake No. 5 and <br />No. 6 have yet to be excavated. The Division did not approve the construction of a slurry wall around Lake No. <br />4. This has been cited as a problem and will require corrective action by the Operator; please see the first page <br />of this report for additional information. <br />The perimeter of Lake No. 1, which is located southeast of the Toad -out area, has been partially reclaimed to <br />final grade. The western shoreline of Lake No. 1 is at an approximate grade of 1H:1V. The shorelines of Lakes <br />No. 2, No. 3, and No. 4 have been graded to 3H:1V or flatter. The perimeters of these pits are stable and did <br />not show any signs of erosion; vegetation is well established around the lakes. The load -out silo, located <br />northwest of Lake No. 1 is the only structure on -site. Historically, aggregate was conveyed to the load -out silo <br />and shipped from the site via trains. The Operator intends to utilize the load -out silo when active mining <br />operations resume. Additional disturbance at the site includes a small rubble pile located on the east side of <br />Lake No. 2 and an equipment bone -yard in between Lakes No. 2 and No. 3. <br />A new policy regarding how sites with exposed groundwater are bonded was instituted by the Division in <br />2011. Operators were given four options for gaining compliance with the new policy. On May 2, 2011, the <br />former Operator submitted documentation demonstrating the exposed groundwater is covered under court <br />decreed plans for augmentation. The following Case Nos. cover the exposed groundwater at the Lyons Pit: <br />80CW0443, 88CW0049, 88CW0074, 88CW0075, and 93CW0159. The Operator is in full compliance with the <br />Division's exposed groundwater policy <br />Based on the observations of this inspection, the Division has determined the current financial warranty is <br />adequate to complete reclamation. <br />This concluded the inspection. <br />Page 2 of 4 <br />