2012-08-13_INSPECTION - M2006078

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OBSERVATIONS PERMIT #: M- 2006 -078 INSPECTOR'S INITIALS: PSH INSPECTION DATE: August 10, 2012 The Camenish Borrow site was inspected by Peter Hays with the Division of Reclamation, Mining and Safety (Division) in response to a request for full reclamation and financial release (SL -02) of the site. Mr. Justin DuMond with Flatiron Constructors, Inc. (Flatiron) was present during the inspection. Flatiron submitted a full financial and performance warranty release request (SL -02) for the site on June 11, 2012. Per Rule 4.17.2(2), the Division is required to inspect the lands and reclamation described in the notice to determine if the Permittee has complied with all applicable requirements within sixty (60) days after receiving the notice. The Division received two letters of objection for the site from the landowner, Phil Camenish, and the Colorado Division of Water Resources. Copies of the letters were delivered to the Operator during the inspection. The Division currently holds a financial warranty of $128,000. The Division approved the request for a Financial Warranty Reduction to $15,000 on November 20, 2011, however the Operator has not provided a rider to reduce the current bond or submit a new bond in the amount of the reduced financial warranty. The Division will deny the Full Financial and Performance Warranty release request (SL -02) for the Camenish Borrow site due to the lack of well - establish vegetation and the lack of a substitute water supply plan or decreed plan for augmentation to replace the lagged groundwater depletions at the site. The purpose of this inspection was to evaluate the site for reclamation completion and revegetation success. The site was previously inspected by the Division on September 1, 2011. The site appeared unchanged since the previous inspection. The Operator has complied with the two problems cited during the previous inspection. The site was interseeded and the shoreline was seeded to the expected waterline in 2011 following the previous inspection. Drill rows were observed along the upper shoreline and upland areas. The observed vegetation was not self regenerating and approximately 50 percent of the site vegetation was dominated by annual weeds. Large patches of Kochia were observed in the upland areas. The Kochia is outcompeting the native vegetation. Kochia, an annual sunflower species and field bind weed were observed along the shoreline and upland areas. Scotch thistle, a noxious weed, was observed in several areas; however it was being controlled with chemical treatments. The Division recommends Flatirons contact their revegetation consultant, Arnold's Custom Seeding, to evaluate the site to determine the best way to eliminate the Kochia and re- establish native vegetation at the site. Inspection Contact Address Justin DuMond Flatiron Constructors, Inc. 10188 E. 125 Frontage Rd. Firestone, CO 80504 CC: Tom Kaldenbach, DRMS Phil Camenish, Landowner Page 2 of 4