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PERMIT #: M -1980 -027 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: July 15, 2013 <br />The Bumgarner Ranches Gravel Pit is permitted for 26.09 acres with a phased maximum allowed acreage <br />disturbance of 9.0 acres. The Operator committed to a phased "not to exceed" disturbance acreage of 9.0 <br />acres in order to limit the financial warranty. The Division currently holds a financial warranty of $25,000.00, <br />based on 9.0 acres of disturbance. The maximum allowed disturbance area was decrease from 15 to 9 acres <br />by TR -02 following the last inspection. <br />The permit area, haul road, entrance sign and affected area were GPS surveyed with a Juno 3B by the Division. <br />A map indicating the results of the GPS survey is attached. The surveyed permit boundary was measured at <br />27.05 acres and the surveyed affected area was measured at 16.67 acres. As stated above and cited as a <br />problem requiring corrective action, the site is permitted for a maximum allowed disturbance area of 9 acres. <br />The Operator must submit a technical revision to modify the mining plan to allow for more disturbed acreage <br />and provide an updated bond calculation based on the increased affected acreage. The Division recommends <br />the Operator remove the maximum allowed disturbance acreage option and bond for the entire planned <br />mined disturbance for the life of the mine. The Division's measured permit boundary of 27.05 acres was <br />inaccurate due to missing boundary markers at the northeast and southeast corners of the permit boundary. <br />The Operator must survey and reinstall the missing boundary markers. <br />The Bumgarner Ranches Gravel Pit is divided into 4 phases. The mine site was active during the inspection. A <br />processing facility and a concrete batch plant were observed at the site. The highwall has advanced east into <br />Phase 2 since the last inspection. The highwall was estimated at twelve (12) feet high at a 1:1 slope. The <br />stripped portion of Phase 2 is almost mined out. The Operator will need to strip and stockpile topsoil and <br />overburden material before mining further to the east. The processing plant was operational and stockpiled <br />material was being hauled from the pit floor of Phases 1 and 2. The sedimentation ponds were observed in <br />the northwest corner of Phase 1. The ponds will be moved east as the mining operation moves to the east. <br />The fuel tank storage area was observed during the inspection. <br />The approved post mining land use is rangeland. Reclamation activities were observed along the west <br />boundary of Phase 1. The northern half of the west boundary has been re- sloped to 3H:1V and revegetated. <br />Topsoil stockpiles were located on the north and west sides of the site. <br />The Division currently holds a financial warranty of $25,000.00. Based on this inspection, the financial <br />warranty is not sufficient to perform the approved reclamation at the site. The financial warranty will be <br />recalculated as part of the required technical revision submittal. <br />An entrance sign was posted and permit boundary markers, except for the eastern markers, were observed as <br />required by Rule 3.1.12. Photographs taken during the inspection are attached. <br />Inspection Contact Address <br />Mr. Dennis Carpenter <br />Bumgarner Ranches, Inc. <br />720 Tyler <br />P.O. Box 517 <br />Kremmling, CO 80459 <br />Cc: Tom Kaldenbach, DRMS <br />Page 2 of 5 <br />