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PERMIT #: M- 2008 -080 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: January 30, 2013 <br />OBSERVATIONS <br />The Journey Ventures Pit was inspected by Peter Hays with the Division of Reclamation, Mining and Safety <br />(Division) as part of the Division's monitoring inspection program. Mr. J.C. York with J &T Consulting, Inc. was <br />contacted prior to the inspection and was scheduled to be present during the inspection, but was unable to <br />attend. The site was previously inspected by the Division on January 27, 2009 as a pre - operational inspection. <br />Mine Plan: <br />The site is permitted for 84.63 acres with 70.16 acres of planned mining disturbance. The site remains <br />undisturbed and is used for horse and cattle ranching activities. The Permittee informed the Division the <br />property will be sold and the reclamation permit will be transfer to another operator in the near future. The <br />new operator may alter the mining plan to divide the site in half (north and south) with and additional slurry <br />wall to allow for in -situ water storage. <br />Mr. York stated a structure agreement with the oil well company has been obtained and the well will remain <br />in its current location. A copy of the structure agreement should be submitted to the Division. A 404 permit <br />will be required by the Army Corps of Engineering according to Mr. York. A copy should be submitted to the <br />Division prior to the start of mining activities. Also, the archeological area in the southeast corner of the site <br />will need to be removed from the approved permit boundary due to an agreement with History Colorado. The <br />Operator must submit an acreage release request, as required by Rule 4.17, to remove this portion of the site <br />from the reclamation permit. <br />Hydrologic Balance: <br />No groundwater is exposed at the site. The permit states the site will be dry mined after installation of a <br />slurry wall. A Substitute Water Supply Plan (SWSP) and a well permit must be obtained from the Division of <br />Water prior to groundwater exposure. Mr. York stated groundwater monitoring has commenced and five <br />quarters of baseline data on the eight monitoring wells is available. <br />Financial Warranty: <br />The Division currently holds a reclamation bond in the amount of $17,579.00 for Phase 1 of the Mining Plan. <br />Signs and Markers: <br />The mine identification sign and affected area boundary markers were not observed as required by Rule <br />3.1.12. The Operator must post a sign at the entrance to the mine site before starting mining activity, which <br />shall be clearly visible from the access road and specify the following; the name of the Operator, indicate that <br />a reclamation permit for the operation has been issued by the Colorado Mined Land Reclamation Board, and <br />the permit number. As noted in the previous inspection report, the permit boundary is partially delineated by <br />fences and the Operator will need to clearly delineate the portions of the permit boundary where no fence is <br />present before mining begins. <br />Photographs taken during the inspection are attached. <br />Inspection Contact Address <br />Mr. Chris Leone <br />Journey Ventures, LLC <br />P. 0. Box 129 <br />Greeley, CO 80632 <br />Page 2 of 4 <br />