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COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />h MINERALS PROGRAM INSPECTION REPORT <br />*41 PHONE: (303) 866 -3567 <br />* 1876 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: <br />MINE /PROSPECTING ID#: <br />MINERAL: <br />COUNTY: <br />Star Water Resource <br />M -1977 -522 <br />Sand and gravel <br />Weld <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: <br />INSP. TIME: <br />Monitoring <br />Eric C. Scott <br />December 19, 2013 <br />12:00 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />L.G. Everist, Incorporated <br />Lynn Mayer Shults <br />112c - Construction Regular Operation <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Surety Related <br />None <br />$103,754.00 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />None <br />None <br />WEATHER: <br />INS CTO S ATURE: <br />SIGNATURE DATE: <br />Clear <br />December 23, 2013 <br />The following inspection topics were identified as haviny' Problems or Possible Violations. OPERATORS <br />SHOULD READ THE FOLLOWING PAGES CAREFULLY IN ORDER TO ASSURE COMPLIANCE <br />WITH THE TERMS OF THE PERMIT AND APPLICABLE RULES AND REGULATIONS. If a <br />Possible Violation is indicated, you will be notified under separate cover as to when the Mined Land <br />Reclamation Board will consider possible enforcement action. <br />INSPECTION TOPIC: Financial Warranty <br />PROBLEM/POSSIBLE VIOLATION: Problem: The financial warranty is not adequate to reclaim the site in accordance <br />with the approved reclamation plan. This is a failure to maintain the proper financial warranty amount to complete <br />reclamation of the affected lands pursuant to C.R.S. 34- 32.5- 117(4)(b) of the Act. <br />CORRECTIVE ACTIONS: The operator shall submit adequate fmancial warranty, as determined by the Division as part <br />of upcoming permit amendment. <br />CORRECTIVE ACTION DUE DATE: 3/20/14 <br />INSPECTION TOPIC: Hydrologic Balance <br />PROBLEM/POSSIBLE VIOLATION: Problem: The Division has no evidence on file at this time that the operator has a <br />valid well permit, substitute water supply plan, or approved water augmentation plan for the exposed groundwater at the <br />site. This is a problem related to 34- 32.5- 116(4)(h) of the Colorado Revised Statutes and 3.1.6(1)(a) of the Construction <br />Materials Rules and Regulations governing injury to existing water rights. <br />CORRECTIVE ACTIONS: The operator shall demonstrate that the operation is in compliance with the Office of the State <br />Engineer, show evidence that the operator is taking measures to bring the site into compliance with the SEO. <br />CORRECTIVE ACTION DUE DATE: 3/20/14 <br />INSPECTION TOPIC: Processing Waste <br />PROBLEM/POSSIBLE VIOLATION: Problem: The site is utilizing concrete fill without prior approval by the Division <br />per 3.1.5(9) of the Rule. <br />CORRECTIVE ACTIONS: The operator shall provide a notarized affidavit, stating that the fill is, in fact, inert and <br />addressing all requirements pursuant to Rule 3.1.5(9), which describes the intended use of inert/off -site fill by the corrective <br />action date. <br />CORRECTIVE ACTION DUE DATE: 3/20/14 <br />Page 1 of 4 <br />