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PERMIT #: M- 2000 -082 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: January 31, 2013 <br />right to receive a decision on the transfer within 30 days in order to allow the Division to calculate the <br />required Financial Warranty before issuing its decision. <br />Financial Warranty: <br />The Division is required to recalculate the required reclamation bond within 60 -days from the date of the <br />transfer is deemed complete (March 12, 2013). The Division currently holds a reclamation bond in the <br />amount of $226,000.00. <br />The Division updated the original 112c permit application bond calculation to reflect the current site acreage <br />and equipment and labor costs. The revised financial warranty amount is $270,000.00, which is an increase of <br />$44,000.00. The Division will notify Superior Oilfield of the financial warranty increase and provide a copy of <br />the Division's calculations under separate cover. Superior Oilfield will have 60 -days from the date of the letter <br />to submit the addition bond amount per Rule 4.2. <br />Hydrologic Balance: <br />The Tong -term groundwater augmentation plan for the site has been addressed by the Operator per the <br />mining lease agreement with the City of Greeley, the landowner of the property. The City is providing <br />replacement water from their waste water treatment plant as the source of short and long term <br />augmentation. The approved final reclamation plan is to create open water lakes. Mr. Miller stated Central <br />Weld County Water District is considering the site along with two other sites in the area for slurry wall <br />installation, which was proposed as an alternative final reclamation plan during the original permitting <br />process. The well permit, substitute water supply plan and discharge permit for the site have been transfer to <br />Superior according to Mr. Miller. The new Operator is in discussion with CDPHE to remove the sedimentation <br />ponds from the discharge permit requirements. <br />Gen. Compliance With Mine and Reclamation Plans: <br />The site was active during the inspection. Mining was occurring in Phase 2. The phase was dewatered and <br />material was being moved by a dozer from west to east. The material was then loaded on a conveyor with a <br />loader. The western edge of Phase 2 appeared to be mined at a 3H:1V slope as required by the approved <br />mine plan. The mined material was conveyed over the Ogilvy Ditch to a processing plant located in Phase 3 <br />and stockpiled. Mr. Miller stated an access permit had not been approved by the City and therefore material <br />could not be hauled out of the site, but he expected the permit the following week. The required 150 foot <br />offset from the Ogilvy Ditch was maintained according to Mr. Miller. <br />No reclamation activity was observed during the inspection; however Mr. Miller stated they intend to reclaim <br />the slopes concurrent with mining. Stockpiles of topsoil and overburden were observed along the north side <br />of Phase 2 and the northwest corner of Phase 3. No noxious weeds were observed during the inspection. The <br />Operator will be required to continue the weed control management at the site. <br />As stated by the Division in the last inspection report, the new Operator needs to submit a technical revision, <br />per Rule 1.9, to update the mining and reclamation plans and maps to address the recent acreage reduction. <br />Additionally, a technical revision or amendment will be required for the slurry wall installation, Ogilvy Ditch <br />relocation and any mining or reclamation plan changes made by the new Operator. <br />Photographs taken during the inspection are attached below. <br />Page 2 of 4 <br />