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June 5, 2012 C- 1992- 081/Hayden Gulch Loadout JLE <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />Y - Air Resource Protection R - Roads <br />N - Availability of Records R - Reclamation Success <br />R - Backfill & Grading Y - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives Y - Slides and Other Damage <br />Y - Fish & Wildlife Y - Support Facilities On -site <br />R - Hydrologic Balance N - Signs and Markers <br />Y - Gen. Compliance With Mine Plan N - Support Facilities Not On -site <br />N - Other N - Special Categories Of Mining <br />N - Processing Waste R - Topsoil <br />COMMENTS <br />This was Phase I Surety Release (SL1) inspection of the Hayden Gulch Loadout Site; DRMS permit number C- <br />1992-081. This site is located south of the town of Hayden Colorado in Routt County. 1, Jared Ebert and Sandy <br />Brown of the Colorado Division of Reclamation, Mining and Safety conducted the inspection. Mr. Roy Karo with <br />Hayden Gulch Terminal, LLC. was not present during the inspection, however we met with him prior to leaving <br />the site. <br />BACKFILL and GRADING — Rule 4.14; Contemporaneous Reclamation 4.14.1; Approximate Original Contour <br />4.14.2; Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials <br />4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />The objective of the inspection was to verify the SL area was backfilled and graded as the Operator reported in <br />the Phase I bond release application and to determine whether the area was graded to the approximate original <br />contour /post operational topography approved in the permit. In order to accomplish this, two transect were walked <br />within the reclaimed area and elevations points were collected along each transect using a Trimble YUMA GPS <br />unit. A known control point elevation was collected near the entrance of the facilities area. Using this control <br />point, the Division was able to correct the elevations recorded along each transect for a more accurate estimate of <br />the elevations. A map depicting the locations of the transects is enclosed with this report. A profile of the <br />elevations collected with the GPS unit along each transect was created. Using the Exhibit A Map submitted with <br />the SL 1 application and the Exhibit 18 -1, Post - Operational Topography and Vegetation map approved in the <br />permit, the Division was able to create elevation profiles of each point on the transects by interpolating the <br />elevations on the maps. See Figures and Tables 1 and 2 below for the results of this analysis. Using these <br />profiles, a comparison can be made between how the area was reported to be backfilled and graded and how it was <br />proposed originally. The elevation profiles created with the GPS data was used to verify the work completed. <br />The elevation profile for Transect 1 is very similar to the SL1 application Exhibit A map and the Exhibit 18 -1, <br />Post - Operational Topography and Vegetation map approved in the permit. The original proposed post operation <br />topography elevations were consistently lower than the elevations reported in the SL application and measured <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 5 <br />Page 2 of 6 <br />