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INSPECTION TOPIC: Reclamation Plan /Success <br />PROBLEM /POSSIBLE VIOLATION: Problem: Failure to follow approved reclamation plan, or current reclamation <br />plan needs to be updated and clarified pursuant to C.R.S. 34- 32.5 -116 (1). The Operator must follow approved <br />reclamation plan or provide sufficient information to describe or identify how the Operator intends to conduct <br />reclamation. <br />CORRECTIVE ACTIONS: The Operator shall submit a Technical Revision, with the required $216 revision fee, to <br />update and clarify the current approved reclamation plan to reflect existing and proposed activities by the <br />corrective action date. <br />CORRECTIVE ACTION DUE DATE: 12/04/12 <br />OBSERVATIONS <br />PERMIT #: M -1985 -026 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: September 26, 2012 <br />The Challenger Pit was inspected by Peter Hays with the Division of Reclamation, Mining and Safety as part of <br />the Division's monitoring inspection program. The site was previously inspected by the Division on January 17, <br />2006. Mr. Ken Coulson was contacted prior to the inspection and was schedule to be present, but was not on <br />site during the inspection. <br />According to annual reports submitted by the Operator mining activities at the site were completed in 2006 <br />and the site is currently in final reclamation. The site is permitted for 66 acres and the Division holds a <br />reclamation bond in the amount of $20,241.00. <br />Problem — Exposed Groundwater Compliance <br />The Division was notified by the Colorado Division of Water Resources (DWR) in May that the site was out of <br />compliance with DWR regulations. The DWR letter dated May 21, 2012, stated the exposed groundwater at <br />the site is not covered under a substitute water supply plan (SWSP), a plan for final augmentation and the site <br />does not have a current well permit. <br />The Challenger Pit is not in compliance with the Division's April 30, 2010 letter, which required all sand and <br />gravel mining operators to comply with the requirements of the Colorado Reclamation Act and the Mineral <br />Rules and Regulations for the protection of water resources. <br />The April 30, 2010 letter required Operator's to provide information to the Division to demonstrate they can <br />replace long term injurious stream depletions that result from mining related exposure to ground water. The <br />letter indentified four (4) approaches to satisfy this requirement. This information was due by April 30, 2011. <br />The Permittee /Operator failed to comply with the requirements of the letter by the due date. The Division <br />will not issue a possible violation for failure to comply with CRS 34- 32.5- 116(4)(h), Rule 3.1.6(1)(a) and <br />6.4.5(2)(c) at this time. To avoid a future possible violation the Permittee must comply with the DWR letter <br />dated May 21, 2012 and contact the Division regarding compliance with the Division's letter dated April 30, <br />2010 within 30 days. A copy of the Division's 2010 letter is attached for reference. <br />The approved post mining land use for the site is pastureland. Several problems regarding the final <br />reclamation at the site were cited during the inspection requiring corrective actions by the Operator. <br />Page 2 of 7 <br />