2012-12-20_INSPECTION - M1986124

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PERMIT #: M- 1986 -124 INSPECTOR'S INITIALS: MAC INSPECTION DATE: December 11, 2012 OBSERVATIONS The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety (Division). Jim Cecil, the Operator of the Cecil II Gravel Pit, was also present for the inspection. The Cecil II Gravel Pit is located approximately 5.5 miles northeast of Cope, Colorado. The site is located on the Arickaree River and is permitted for 9.9 acres. The post- mining land use is general agriculture. On October 25, 2012, the Division received a Successor of Operators Application to transfer the 110 Construction Materials Reclamation Permit from Mr. Donald Popejoy to Mr. Jim Cecil. The Successor Operator posted a replacement financial warranty in the amount of $7,500.00 and the transfer of the permit was approved on November 19, 2012. The purpose of this inspection was to verify that the financial warranty is adequate to complete reclamation at the site. The permit sign was missing from the site entrance. The lack of a permit sign has been cited as a problem and will require corrective action by the Operator; please see the first page of this report for additional information. The permit boundary was delineated by fences as required by Rule 3.1.12. The site was not being mined at the time of the inspection; the Operator intends to mine the site on an as needed basis. The Division informed the Operator that if the site is not operated for 180 consecutive days, then the operation must be placed into Temporary Cessation pursuant to Rule 1.13.5. Mining at the site has primarily occurred within the channel of the Arickaree River, which is an ephemeral stream. The Arickaree River was not flowing at the time of the inspection. Sand and gravel is removed from the main channel of the Arickaree River to a depth of approximately 4 feet below the banks. The sand and gravel is replenished each time the Arickaree River flows. Currently, the east portion of the channel has been mined to approximately 3 feet below the banks. There is approximately 250 LF of channel which could be mined on the west side of the site. The Division observed a small gravel stockpile on the south side of the Arickaree River. The stockpile was placed there by the former Operator, but will be used by the current Operator. The Mining Plan allows for mining outside of the banks of the Arickaree River, primarily south of the river. However, the current Operator has indicated that he does not intend to mine outside of the river banks. The Operator may file a Technical Revision to update and clarify the Mining and Reclamation Plans. Once the Mining and Reclamation Plans have been updated, the Operator can request a reduction of the financial warranty pursuant to Rule 4.14. The request for a financial warranty reduction must be made in writing and be separate from other correspondence. In addition, the request must include an estimate of the actual cost to reclaim the site based on what is would cost an independent contractor to complete reclamation. Upon receiving the request for a financial warranty reduction, the Division can recalculate the required bond amount based on disturbance only occurring within the channel of the Arickaree River. The Division conducted the last inspection on December 13, 2011. During that inspection the Division cited a problem for failure to complete reclamation within five years from the date mining operations ceased. This problem is now considered to be abated as a result of the transfer of the Reclamation Permit. The Successor Operator should note that all reclamation of the site must be completed within five years from the time mining ceases as required by Rule 3.1.3 As noted above, the Division currently holds a financial warranty in the amount of $7,500.00. Based on the observations made during the inspection, the Division has determined that the financial warranty is adequate to complete reclamation of the existing disturbance. This concluded the inspection. Page 2 of 4