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PERMIT #: M -1977 -036 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: March 23, 2012 <br />OBSERVATIONS <br />The Greeley 35 Avenue Pit, File No. M- 1977 -036, was inspected by Peter Hays with the Division of <br />Reclamation, Mining and Safety (Division) as required by the Transfer of Permit and Succession of Operators <br />process and Rule 1.12. Mrs. Julie Mikulas with Martin Marietta Materials, Inc. was present during the <br />inspection. The site was previously inspected by the Division on September 23, 2009. <br />On January 3, 2012, Martin Marietta submitted a Transfer of Permit and Succession of Operators Application <br />Form (SO -02) and selected Option B. By selecting Option B, Martin Marietta choose to not waive their right to <br />a 30 -day processing period and was required to submit a replacement Financial Warranty for the same dollar <br />amount maintained by the current Operator ($967,789.00). On February 1, 2012, the application was deemed <br />complete following the submittal of the appropriate financial and performance warranties. The Division <br />approved the Transfer of Permit and Succession of Operators for the Greeley 35 Avenue Pit on February, 15, <br />2012. Martin Marietta is now the permitted operator of the Greeley 35 Avenue Pit and Lafarge West, Inc. <br />has been released from reclamation responsibility at the site. <br />Hydrologic Balance: <br />The Tong -term groundwater augmentation plan for the site has not been adequately address by the Operator. <br />The previous Operator complied with the Division's letter dated April 30, 2010 addressing operations with <br />exposed groundwater by stating the site was bonded to become a lined pit, which is not the case. The revised <br />bond estimate for the site includes a task to install slurry walls around the 140 acres of open -water lakes <br />remaining at the conclusion of reclamation. The short-term groundwater exposure is covered by a well permit <br />and substitute water supply plan. <br />Financial Warranty: <br />The Division is required to recalculate the required reclamation bond within 60 -days from the date the <br />transfer is completed (April 15, 2012). The Division currently holds a reclamation bond in the amount of <br />$967,789.00. <br />The Division updated the most recent bond calculation (AM -01) to include the cost to install slurry walls <br />around the five (5) unlined lakes created by the mining operation. The revised financial warranty amount is <br />$4,546,572.00, which is an increase of $3,578,783.00. The Division will notify Martin Marietta of the financial <br />warranty increase and provide a copy of the Division's calculations under separate cover. Martin Marietta will <br />have 60 -days from the date of the letter to submit the addition bond amount per Rule 4.2. <br />Martin Marietta stated they would research alternative methods for compliance with the Division's April 30, <br />2010 letter regarding sites with exposed groundwater and contact the Division in a few weeks. <br />Gen. Compliance With Mine Plan: <br />The Greeley 35 Avenue Pit was active during this inspection. The 2011 Annual Report submitted by Lafarge <br />accurately depicted the current mining related disturbance and state of reclamation at the site. Overall, the <br />site is unchanged since the last inspection performed by the Division with the exception of the West Lake. <br />Mining in the West Lake is complete except for mining the pit floor down to the shale bedrock. All mining at <br />the site is expected to be completed in 2012. All slopes in the West Lake, except for the center section along <br />the north side were graded to 3H:1V or less. The conveyor located in the middle of the lake will remain and be <br />used to transport material from the Iverson Mine to the processing plant located in the Greeley 35 Ave site. <br />Page 2 of 5 <br />