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HomeMy WebLinkAbout041-300-003state of catuomie DEPARTMENT OF CONSERVATION - 2006 MINING OPERATION ANNUAL REPORT CA MINE ID # 91- Q r j o /0 MRRC-2 Page 1 MINE NAME Pripmpany Opera A_Ul AI-�V ��I� Site+ Contact Person (/t rs � Teleep�h�o/nye % `� 6.70 .3 / O72 Street Addres.0 Box No. - City, S�a#e21� delCouMy� - PO � Ad -2 5 2. Designated Agent's Name (individual sidei CA) Mailing Address CityP - a e �— Telephonee Z_11 - ( P ITEMS BELOW WHICH ARE PRECEDED BY A BOX LABELED N.C. MAY BE CHECKED= JE THERE ARE NO CHANGES IN THE INFORMATION FROM THE LAST REPORTING YEAR. (NOTE: IF THIS IS THE FIRST TIME YOU HAVE FILED A REPORT, ALL SECTIONS MUST BE COMPLETED.) 3. Owner of Mining Operation Telephone Mailing Address (this address will be edto end nr y4i'Vept fo CityState0P Code Country (Ii other than U.S.A.) Wasthisoperation purchased by you uring reporting year Was this operation sold by you during reputing year? Yes. If yes, date of purchase Ly'r t� Yes. If yes, date of sale L� ryo 4. Landowner ^ Assessors Parcel J C t FC/Vb z- a�6-- M ng Add Telephone City/StateOP Cod Country (I: other than U.SA) i 5. Status of Mining Activities DURING THE REPORTING ewly Permitted -Not yet in operation. Date Pennitted 3 ` D Active. Idle (as defined in Public Resources Code Section 2727.1). Complete the following: Date operation became idle Copy of Approved Interim Management Plan attached. Interim Management Plan pending with Lead Agency. • rl Closed with no Intent to resume. Date mining ceased Closed—redamation certified complete by Lead Agency. Date mining ceased 6. Status of Reclamation Activiti s DURING THE REPORTING YEAR ❑ Reclamation not started. Redamation in (attach updated reclamation plan map indicating progress). Reclamation certified complete by Lead Agency. ~' Redamation certified complete on ' (Date). Financial Assurances released on (Date). i DISTRIBUTION: Original to State Copy to Lead Agency Copy to Operator t State at Catdoiida ? DEPARTMENT OF CONSERVATION 2006 MINING OPERATION ANNUAL REPORT CA. MINEIM 91- G 41.- ©� �� I MRRC-2 Page 7. Lrjo4es [] No Inspection completed by Lead Agency during the reporting year. If yes, -h a copy of the Surface Mining Inspection Report (MRRC-1). If inspection report is not attached, please explain on Page 4. I L&/ 8A. SMARA Lead Agency (city OR county'ONLY) N.C. 8B. Reclamation Plan Status R MEMOWE N.C. No Plan ; Q Approved on (date). Attach copy with amendments, conditions, and PROOF of approval. f Number of acres subject to Reclamation Plan Pending. Submitted to Lead Agency on (date). n On Ap eal. Submitted to SMGB on (date). 9 s- Financial Assurances approved by Lead Agency.8` 1N > Complete below for approved Financial Assurances: Date of Annual Review Eglration Data or , . Amount - . Type Date Posted . by Lead Ag -y Renewal Data Of appuc&e) . 1 No: Financial Assurances NOT approved by Lead Agency. FIFinancial Assurances pending with Lead Agency. Submitted on (date) IF APP-LtABLE, INFORMATION REQUIRED. IN ITEMS 10 THROUGH 13 MUST BE PROVIDED FOR EACH SEPARATE PLOT 10. ATTACH NAMED U.S. GEOLOGICAL SURVEY MAP -7.5' OR 15' QUAD—SHOWING BOUNDARIES OF MINNG OPERATION N.C. Latitude Longitude' -Section—Townshp—Range—Base Meridian Quad, Name County . 11. Type Code(s) of Mining Operation N.C. i 12. DISTURBED ACREAGE ' 1• laa L. Approximate disturbed acreage at beginning of 2006.. (This figure should match the figure from items 12, line 5 on your 2005 —` = annual report If it does not match, please explain on Page 4.) Approximate acreage disturbed during 2006. 3• (ADD LINE.1 TO UNE 2) _ / 1 G ( s ��ST 4. Approximate disturbed acreage reclaimed during 2006. S ��� T V RF 5 0 (SUBTRACT LINE 4 FROM LINE 3) Approximate disturbed acreage remaining at end of 2006. 13.h a� N.C. Acres Permitted: A Permit # Acres Vested (Acres disturbed prior to January 1, 1976) Acres on Federal Lands: & PemniUlD # i 14. N.C. $ Current total assessed value of mining operation as established by County Assessc es Office. DISTRIBUTION: :Original to State Copy to Lead Agency Copy to Operator i. state of cardomla DEPARTMENT OF CONSERVATION 2006 MINING OPERATION ANNUAL REPORT CA MINEID# 91- MRRC-2 Page 3 15. COMMODITIES AND PRODUCTION PRODUCTION INFORMATION 15 PROPRIETARY AND WILL BE KEPT CONFIDENTIAL PURSUANT TO PUBLIC RESOURCE CODE SECTION 2207(g) i 16. FEES SCHEDULE USING BOTH YOUR CATEGORY NUMBER AND TOTAL PRODUCTION FROM 15(A) ABOVE, REFER TO EXHIBIT C TO FIND YOUR, CORRESPONDING PRODUCTION RANGE ENTER YOUR C RRESPONDING PRODUCTION CODE IN 16(A) AND FEE IN 'G(B) BELOW. A. PRODUCTION CODE.. ac' B. REPORTING FEE .... $ _� t r GOLD AND SILVER FEE: IF GOLD OR SILVER PRODUCTION IS REPORTED IN SECTION 15(A) OR 15(B), CONTINUE ON TO COMPLETE 16(C) AND (D) C. GOLD FEE' ( Ounce(s) of gold) X ($5.00 per ounce) = $ 0.00 D. SILVER FEE ( 0unce(s) of silver) X ($0.10 per ounce) = $ 0.00 TOTAL -FEES DUE: SUM OF 16(B), (C) AND (D) $ 0.00 (ATTACH ONE CHECK FOR TOTAL) „ 17. SUBMITTED BY: JAI / Name (Please print) M L^ 5' 12 - JAI I L- L) �R ��.�Qi / ��i •I �� � Mailing Address. i City /StateOP Code Telephone Number ('3d 0 7 , 012,4 certify that the information submitted herein is complete and accurate (failure to submit complete and accurate requisite inform ation may result in an administrative penalty as provided for in Public Resources Code Section �2777 f4.1). SIGNATURE OF SUBMITTER (SCJ DATE ��z �� 0-7 TITLE, OF SUBMITTER' r , Please mail annual report, reporting fee, gold and silver fee and ALL required attachments to: w DEPARTMENT OF CONSERVATION Office of Mine Reclamation 801 K'Street, MS .09-06 Sacramento, CA 95814-3529 DISTRIBUTION' . Original to State Copy to Lead Agency Copy to Operator Check here if TOTAL PRODUCTION Category No Number Production List All Commodities (from I fora ' Amount of Troy (from Exhibit B) Exhibit B) Commodity Production Tons Ounces Pounds A. PRIMARY COMMODITY PRODUCED BY OPERATION'. L ^ `�f M©f 0 �- O- 4 0-- o - B. ALL OTHER COMMODITIES PRODUCED BY OPERATION (Include any production of gold and silver); , 16. FEES SCHEDULE USING BOTH YOUR CATEGORY NUMBER AND TOTAL PRODUCTION FROM 15(A) ABOVE, REFER TO EXHIBIT C TO FIND YOUR, CORRESPONDING PRODUCTION RANGE ENTER YOUR C RRESPONDING PRODUCTION CODE IN 16(A) AND FEE IN 'G(B) BELOW. A. PRODUCTION CODE.. ac' B. REPORTING FEE .... $ _� t r GOLD AND SILVER FEE: IF GOLD OR SILVER PRODUCTION IS REPORTED IN SECTION 15(A) OR 15(B), CONTINUE ON TO COMPLETE 16(C) AND (D) C. GOLD FEE' ( Ounce(s) of gold) X ($5.00 per ounce) = $ 0.00 D. SILVER FEE ( 0unce(s) of silver) X ($0.10 per ounce) = $ 0.00 TOTAL -FEES DUE: SUM OF 16(B), (C) AND (D) $ 0.00 (ATTACH ONE CHECK FOR TOTAL) „ 17. SUBMITTED BY: JAI / Name (Please print) M L^ 5' 12 - JAI I L- L) �R ��.�Qi / ��i •I �� � Mailing Address. i City /StateOP Code Telephone Number ('3d 0 7 , 012,4 certify that the information submitted herein is complete and accurate (failure to submit complete and accurate requisite inform ation may result in an administrative penalty as provided for in Public Resources Code Section �2777 f4.1). SIGNATURE OF SUBMITTER (SCJ DATE ��z �� 0-7 TITLE, OF SUBMITTER' r , Please mail annual report, reporting fee, gold and silver fee and ALL required attachments to: w DEPARTMENT OF CONSERVATION Office of Mine Reclamation 801 K'Street, MS .09-06 Sacramento, CA 95814-3529 DISTRIBUTION' . Original to State Copy to Lead Agency Copy to Operator State of Califomia DEPARTMENT OF CONSERVATION 2006 MINING OPERATION ANNUAL REPORT MRRC-2 Page 1 0 CA MINE ID # 91- 04-0020 MINE NAME BLUE LEAD MINE 1. Company Operating Site Contact Person Telerhone LOAFER CREEK, LLC STEVE MARDIGIAN ( 530) 566-1988 Street Address/P.O. Box No. City StateVZIP Code/County 8014 HIGHWAY 99 OROVILLE CA 95965 -BUTTE 2. Designated Agent's Name (individual must reside in CA) Mailing Address STEVE MARDIGIAN 8014 HIGHWAY 99 City ZIP Code Telephone OROVILLE 95965 (-'C30 ) 566-1988 ITEMS BELOW WHICH ARE PRECEDED BY A BOX LABELED N.C. MAY BE CHECKED— JF THERE ARE NO CHANGES IN THE INFORMATION FROM THE LAST REPORTING YEAR. (NOTE: IF THIS IS THE FIRST TIME YOU HAVE FILED A REPORT, ALL SECTIONS MUST BE COMPLETED.) 3. Owner of Mining Operation Telephone LOAFER CREEK, LLC I ( 530 ) 566-1988 Mailing Address (this address will be used to send next year's report form) Rn14 HIGHWAY 99 City State/ZIP Code Country (If other than U.S.A.) 1 OROVILLE CA 95695 USA Was this operation purchased by you during reporting year? Was this operation sold by you during reporting year? Yes. If yes, date of purchase r No. Yes. If yes, date of sale [j No. 4. Landowner Assessor's Parcel # LOAFER CREEK, LLC 02E-430-007,008,009 Mailing Address Telephone 8014 HIGHWAY 99 ( 530 ) 566-1988 City/State/ZIP Code Cou itry (If other than U.S.A.) OROVILLE, CA 95695 USA 5. Status of Mining Activities DURING THE REPORTING YEAR [CHECK�I,-ONLY'; Newly Permitted -Not yet in operation. Date Permitted i Active. rj Idle (as defined in Public Resources Code Section 2727.1). Complete the following: Date operation became idle Prior to 9/2003 rl Copy of Approved Interim Management Plan attached. [j Interim Management Plan pending with Lead Agency. rj Closed with no intent to resume. Date mining ceased rj Closed—reclamation certified complete by Lead Agency 6. Status of Reclamation Activities DURING THE REPORTING YEAR Date mining ceased F Reclamation not started. rj Reclamation in progress (attach updated reclamation plan map indicating progress). (-j Reclamation certified complete by Lead AgencyATTACHGERTICATIN Reclamation certified complete on (Date). Financial Assurances released on (Date). DISTRIBUTION: Original to State Copy to Lead Agency Copy to Ope:-ator State of California DEPARTMENT OF CONSERVATION CA MINEID# 91- 04-0020 2006 MINING OPERATION ANNUAL REPORT MRRC-2 Page 2 7. r Yes? NoInspection completed by Lead Agency during the reporting year. If yes, attach a copy of the Surface Mining Inspection Report (MRRC-1). If inspection report is not attached, please explain on Page 4. F 8A. SMARA Lead Agency (city OR county ONLY) N.C. r 8B. Reclamation Plan Status `CHEGKONE N.C.No Plan i F_11.' Approved on (date). Attach copy with amendments, conditions, and PROOF of approval. Number of acres subject to Reclamation Plan r Pending. Submitted to Lead Agency on (date). 11ATTA0141VROOF,OF SUBMITTAL On Appeal. Submitted to SMGB on (date). gTnTACHPROOFwQF�,Sl1BMITTAL 9• r) Yes: Financial Assurances approved by Lead Agency. 1ATTACfi COPY'AND,.P.,ROOF OF=APPROVA" Complete below for approved Financial Assurances: Date of Annual Review' Expiration Date or Amount Type Date Posted by Lead Agency Renewal Date (if applicable) r No: Financial Assurances NOT approved by Lead Agency. Financial Assurances pending with Lead Agency. Submitted on (date) I WW" I ��SUBMilft,AL IF APPLICABLE, INFORMATION REQUIRED IN ITEMS 10 THROUGH 13 MUST BE PROVIDED FOR EACH SEPARATE PLOT X 10. ATTACH NAMED U.S. GEOLOGICAL SURVEY MAP —750R 15' QUAD—SHOWING BOUNDARIES CF MINING OPERATION N.C. Latitude Longitude Section—Township—Range—Base Meridian Quad Name- County r 11. Type Code(s) of Mining Operation -SEE`EXHIBIT=A FQ# TYPKjCODESu N.C. 12. DISTURBED ACREAGE 1. 80 Approximate disturbed acreage at beginning of 2006. (This figure should match the figure from item 12, line 5 on your 2005 annual report. If it does not match, please explain on Page 4.) 2, 0 Approximate acreage disturbed during 2006. 3. 80 (ADD LINE 1 TO LINE 2) 4, 0 Approximate disturbed acreage reclaimed during 2006. 5, 80 (SUBTRACT LINE 4'FROM LINE 3) Approximate disturbed acreage remaining at end of 2006. rf 13. s`-H� ECICALL THAI APP,EY N.C. Acres Permitted: & Permit # r Acres Vested (Acres disturbed prior to January 1, 1976) �I Acres on Federal Lands: & Permit/ID # r; 14. N.C. $ Current total assessed value of mining operation as established by County Assessor's Office. DISTRIBUTION: Original to State Copy to Lead Agency • Copy to Operator State of California DEPARTMENT OF CONSERVATION 2006 MINING OPERATION ANNUAL REPORT CA MINEID# 91- 04-0020 MRRC-2 Page 3 15. COMMODITIES AND PRODUCTION PRODUCTION INFORMATION IS PROPRIETARY AND WILL BE KEPT CONF®ENTIAL PURSUANT TO SEE EXHIBffiBfOW1COMMODI,T,IES'WAND"UNITS'O''P� OFE-fl PUBLIC RESOURCE CODE SECTION 2207(g) 16. FEES SCHEDULE USING BOTH YOUR CATEGORY NUMBER AND TOTAL PRODUCTION FROM 15(A) ABOVE, REFER TO. EXHIBIT C TO FIND YOUR CORRESPONDING PRODUCTION RANGE. ENTER YOUR CORRESPONDING PRODUCTION CODE IN 16(A) AND FE= IN 16(B) BELOW. 'FI20AllEXHIBITC A. PRODUCTION CODE .., . D ........................ FROMAEXHIBITrC> -P-r - B. REPORTING FEE......... ............................................. $ 1,320.00 GOLD AND SILVER FEE: IF GOLD OR SILVER PRODUCTION IS REPORTED IN SECTION 15(A) OR 15(B), CONTINUE ON TO COMPLETE 16(C) AND (D) C. GOLD FEE ( Ounce(s) of gold) X ($5.00 per ounce) _ $ 0.00 D. SILVER FEE ( Ounce(s) of silver) X ($0.10 per ounce) = $ 0.00 TOTAL FEES DUE: SUM OF 16(B), (C) AND (D) $ 1,320,00 (ATTACH ONE CHECK FOR TOTAL) 17. SUBMITTED BY: Name (Please print) David R. Nelson Mailing Address P.O. Box 968 City/State/ZIP Code Colusa, CA 95932 Telephone Number ( 530) 458-5157 I certify that the information submitted herein is complete and accurate (failure to submit complete and accurate requisite nformation may result in an administrative. penalty as provided for in Public Resources Code Section 2774.1). SIGNATURE OF SUBMITTE DATE 6/26/07 TITLE OF SUBMITTER Manager Please mail annual report, reporting fee, gold and silver fee and ALL required attachments to: DEPARTMENT OF CONSERVATION Office of Mine Reclamation 801 K Street, MS 09-06 Sacramento, CA 95814-3529 DISTRIBUTION; Original to State Copy to Lead Agency Copy to Operator Check here if TOTAL PRODUCTION Category No �CHEGI(aON Number Production List All Commodities (from Exhibit B) (from Exhibit B) for a Commodity Amount of Troy Production -ons Ounces Pounds A. PRIMARY COMMODITY PRODUCED BY OPERATION: 1 X B. ALL OTHER COMMODITIES PRODUCED BY OPERATION (include any production of gold and silver); X 16. FEES SCHEDULE USING BOTH YOUR CATEGORY NUMBER AND TOTAL PRODUCTION FROM 15(A) ABOVE, REFER TO. EXHIBIT C TO FIND YOUR CORRESPONDING PRODUCTION RANGE. ENTER YOUR CORRESPONDING PRODUCTION CODE IN 16(A) AND FE= IN 16(B) BELOW. 'FI20AllEXHIBITC A. PRODUCTION CODE .., . D ........................ FROMAEXHIBITrC> -P-r - B. REPORTING FEE......... ............................................. $ 1,320.00 GOLD AND SILVER FEE: IF GOLD OR SILVER PRODUCTION IS REPORTED IN SECTION 15(A) OR 15(B), CONTINUE ON TO COMPLETE 16(C) AND (D) C. GOLD FEE ( Ounce(s) of gold) X ($5.00 per ounce) _ $ 0.00 D. SILVER FEE ( Ounce(s) of silver) X ($0.10 per ounce) = $ 0.00 TOTAL FEES DUE: SUM OF 16(B), (C) AND (D) $ 1,320,00 (ATTACH ONE CHECK FOR TOTAL) 17. SUBMITTED BY: Name (Please print) David R. Nelson Mailing Address P.O. Box 968 City/State/ZIP Code Colusa, CA 95932 Telephone Number ( 530) 458-5157 I certify that the information submitted herein is complete and accurate (failure to submit complete and accurate requisite nformation may result in an administrative. penalty as provided for in Public Resources Code Section 2774.1). SIGNATURE OF SUBMITTE DATE 6/26/07 TITLE OF SUBMITTER Manager Please mail annual report, reporting fee, gold and silver fee and ALL required attachments to: DEPARTMENT OF CONSERVATION Office of Mine Reclamation 801 K Street, MS 09-06 Sacramento, CA 95814-3529 DISTRIBUTION; Original to State Copy to Lead Agency Copy to Operator State otCalitomia. A - f •5 + DEPARTMENT OF CONSERVATION 2006 MINING OPERATION ANNUAL REPORT MRRC-2 Page 4 '`• CA MINEIM 91- ' _ ry - • � . - ... 1. ... _. s ,_ ; DISTRIBUTION: Original to State Copy to Lead Agency Copy to Operator • State of California DEPARTMENT OF CONSERVATION ^l OFFICE OF MINE RECLAMATION / MRRC-1 Page 1 of 3 (Rev. 09/05) SURFACE MINING INSPECTION REPORT Instructions for completing this form are on the reverse side. Attach notice(s) of violation(s) and order(s) to comply for all otserved non-compliance. I. Mine Name as reported by Operator on Mining Operation Annual Report Inspection Date: CA MINE ID#: BLUE LEAD MINE 11-7-06 91-04-0020 II. SMARA Lead Agency Name (City or County only ) P Loafer Creek, LLC Butte County Contact Person T_lephone Inspector (�30) 566-1137 T+lephone Ignacio Gonzalez and Zachary Thomas Mailing Address (:07) 332-6263 8014 Highway 99 ' ❑ (°30) 894-3469 Title �P Code Organization California Contract Planners E-mail Address (Optional) dkohrdt(alloafercreek. com Planning Division Mailing Address 7 County Center Drive City State ZIP Code Oroville California 95965 E-mail Address (Optional) naonzalez(alpacificmunicipal.com and zthomas0pacificmunici2aLcom III. MineOperator P Loafer Creek, LLC No Contact Person T_lephone Steve Mardigan, Agent & Danny G. Kohrdt, Owner (�30) 566-1137 ❑ F%X 530 566-1881 Mailing Address x 8014 Highway 99 ' ❑ City State �P Code Oroville California 95965 E-mail Address (Optional) dkohrdt(alloafercreek. com IV. Does the operation have: P NR No Yes A permit to mine? x ❑ ❑ Permit # MIN 81-43 An approved Reclamation Plan? x ❑ ❑ RP # RP -81-43 Has the operator filed a Mining Operation Annual Report (form MRRC-2)? Check one: ® Yes (9/05/06) ❑ Na ❑ Unknown Is this operation on Federal Land? Check one: If "Yes", provide one or both of the Federal Mine Land Identification Numbers below: [3 Yes No California Mining Claim Number (CAMC#): N/A U.S. Forest Service Identification Number (USFS ID#): N/A DISTRIBUTION: Original to Operator. Copies to: State (by Lead Agency), Lead Agency, State (by Operator), and BLM or USFS (if required). INSTRUCTIONS FOR COMPLETING SURFACE MINING INSPECTION REPORT Form MRRC-1 Page 1 (Rev.09/05) This report documents observations concerning compliance with California's Surface Mining and Reclamation Act (SMARA) and related reporting requirements (Public Resources Code Sections 2207 and 2710 et seq.) and, for operations located partly or solely on Bureau of Land Management (BLM) lands, Title 43, parts 3500, 3600, and 3800 of the Code of Federal Regulations and other agency requirements that are designed to prevent or minimize adverse environmental effects of mining. Lead agencies must file a copy of each inspection report, along with any notices of violation and orders for compliance issued, within 30 days of completion of the inspection. Mine Operators must attach a copy of this report to their next Mining Operation Annual Report (Form MRRC-2): BLOCK I: Enter the name of the Mining Operation, the date of the inspection, and the California Mine ID # (if ID# is unknown, enter "unknown"). BLOCK II: For "Lead Agency", enter the name of the certified SMARA Lead Agency that is conducting this inspection. Acceptable entries include the name of the city, county, Bay Conservation and Development Commission (BCD), and State Mining and Geology Board (SMGB). For "Organization", enter the name of the agency, firm or other organization that employs the inspector. If the inspector is an independent contractor, enter "independent contractor." The e-mail address is optional. BLOCK III: Enter the name of the Mine Operator. Also, enter the name, mailing address, and phone number of the person (the operator or a person acting on the operator's behalf) who will serve as a contact for any follow-up correspondence or discussions regarding the inspection or violations noted. The e-mail address is optional. BLOCK IV: Check the appropriate boxes. P = Pending (on appeal. or awaiting approval by Lead Agency) NR = Not Required for this operation at the time this inspection was completed. No = No 1 Yes = Yes, supply information. 0 -'�State of California DEPARTMENT OF.CONSERVATION OFFICE OF MINE RECLAMATION MRRC-1 Page 2 of 3 (Rev. 09105) • SURFACE MINING INSPECTION REPORT V. Does the Operator currently have a Lead Agency approved Financial Assurance? Check one: ® Yes ❑ No If "Yes', complete section below. If "No", refer to instructions on the reverse of this page and complete Section VI. Inspection Date: November 7, 2006 CA MINE ID#: 91-04-0020 Type of Financial Assurance Mechanism(s) Financial Assurance Mechanism Numbers) Current Amount on File Date of Expiration ❑ Surety Bond $ ❑ Certificate of Deposit $ ❑ Letter of Credit ❑ Trust Fund $ ❑ Pledge of Revenue $ ❑ Budget Set Aside $ ® Cash Deposit Cash Deposit held by County Treasurer $$50,000.00 ontinuous The Financial Assurance Amount must be adjusted annually. Attach a copy of the revised Financial Assurance Amount calculation with this report. Date of Financial Assuratce Amount Calculation: 11/7/06 Does the current mechanism(s) on file cover the new annual calculation? X Yes ❑ Norequired: If "No", date operator was -iotified that a new mechanism is October 24, 2006 (see attached copy of letter) VI. Financial Assurance comments. As of the inspection date, the required annual cost estimates required under SMARA had not been submitted for Planning Staff review. The Mine operator has been notified of the requirement to submit the annual cost estimates. See attached copy of letter sent to mine operator requesting the annual cost estimates. Current Cash Deposit is a cash deposit on file with the County Treasurer's Office in the amount of $50,000. The cash deposit is currently being maintained by the County. The cash deposit currently does not meet the provisions for an appropriate financial assurance under SMARA, as it does not name the Dept. of Conservation. The operator will need to file a financial assurance mechanism that satisfies both the State and the County. The operator has been notified to provide to the County by December 31, 2006, revised cost estimates for the financial assurance calculations. Staff believes that the current amount ($50,000.00) is adequate for the reclamation and equipment removal from the site should the County and State need to reclaim the site, as the applicant has already performed a significant amount of reclamation activities as well as cleaning up the site. Attached are photographs ofthe site that illustrate staffs findings. Upon receipt of revised cost estimates, County/PMC staff will submit to OMR for review and approval, The operator will then be eequired to submit a revised financial assurance mechanism that is acceptable to both the County and OMR. DISTRIBUTION: Original to Operator. Copies to: State (by Lead Agency), Lead Agency, State (by Operator), and BLM or USFS (if equired). 0 • INSTRUCTIONS FOR COMPLETING SURFACE MINING INSPECTION REPORT Form MRRC-1 Page 2 (Rev.09/05) BLOCK V: Check "Yes".or "No" regarding the existence of an approved Financial Assurance Mechanism currently in place. If "No" is checked, continue to Block VI and provide required information. If "Yes" is checked, provide specific information required. Type of Financial Assurance Mechanism(s): place a check mark in the appropriate box identifying the type of mechanism(s) that is on file. Fill in the blank box to supply information for a mechanism not listed. State the Financial Assurance Mechanism(s) document number. State the dollar amount of the Financial Assurance Mechanism(s) currently on file. State the date of expiration on the Financial Assurance Mechanism(s) currently on file. Attach a copy of the current year's Financial Assurance Amount calculation with the Inspection Report. State the date of calculation. Indicate "Yes" or "No" regarding whether or not the current mechanism(s) on file cover the new annual calculation. The Financial Assurance Amount must be adjusted annually to account for new lands disturbed by surface mining operations, inflation, and reclamation of lands accomplished in accordance. with the approved Reclamation Plan. In order to determine what adjustments, if any, are appropriate to the Financial Assurance Amount, each mine operator.must annually submit a revision of the written calculation of the Financial Assurance Amount to the Lead Agency. Attach a copy of the revised Financial Assurance Amount calculation with this report. BLOCK VI: Use this block to add comments regarding the Operator's Financial Assurance status, or if "No" was checked in Block V. Explain in detail why this operation does not have a Lead Agency approved Financial Assurance, such as; "Pending" with Lead Agency, explain, date submitted and status, "Appealed" - explain, date submitted and status, "Financial Assurance Mechanism is in process" - explain, date submitted and status, "Change of Ownership" - explain, date of notice and status, or "Other". { State of California I DEPARTMENT OF CONSERVATION OFFICE OF MINE RECLAMATION MRRC-1 Page 3 of 3 (Rev. 09/05) SURFACE MINING INSPECTION REPORT VII. Is the operation in compliance with provisions of the approved Reclamation Plan with respect to: OK VN NI NA CA MINE ID # 91—04-OD20 Wildlife Habitat X 13 E ❑. Inspecion Date: 11-7-06 Revegetation , X 0. 00 Agricultural Land 0 X Weather Code(s): CR Stream Protection X ❑ Cl ❑ Duration of Inspection: 1 1/2 Hours Tailings and Mine Waste Management X ❑ Cl ❑ Closure of Surface Openings X 0 [3 Approximate Disturbed Acreage: 80 -acres Building, Structure, and Equipment Removal X ❑ 0 ❑ Topsoil Salvage, Maintenance, and Redistribution X ❑ 11 C] Status of Operation Code(s): AD Backfilling, Regrading, Slope Stability, and Recontouring X O 0 11 Drainage, Diversion Structures, Waterways, and Erosion X ❑ 11 El Status of Redamation Code(s): R Other (list or explain below) X ❑ 11 ❑ VIII. Comments/Description of Violation(s) and Corrective Measure(s) Required [NOTE: please Indicate if you have attached notice(s) of violation(s) and correction order(s), in lieu of description on this form]: The property owner has begun reclamation efforts of the site. The property owner stated that during the inspection that he would like to reclaim and clean up the site before continuing the mining operation of the site. The site has, and is being graded for proper drainage and erosion control. Approximately 250 Oak trees and Pine seedlings were planted this last year as well as approximately 15 acres of the site have been hydroseeded. The County will continue to monitor the operator's efforts of reclamation, and will note progress in subsequent reports to OMR. The operator was notified of the requirements to submit the required annual cost estimates. Upon receipt of the requested information of the operator, the County of Butte will forward all documents to OMR for review and approval. Attached are photographs depicting inspection findings. Cost Estimates are to be revised and updated. Upon receipt from the operator, The Planning Division will submit to OMR for review and approval. No violations were noted during course of inspection. IX. Number of Violations: None Inspector's Signature: Date Signed: November 28, 2006 DISTRIBUTION: Original to Operator. Copies to: State (by Lead Agency), Lead Agency, State (by Operator), and BLM or USFS (if -required). INSTRUCTIONS FOR COMPLETING SURFACE MINING INSPECTION REPORT Form MRRC-1 Page 3 (Rev.09/05) BLOCK VII: Check the appropriate boxes: OK = Inspected, found in compliance NI = Not inspected (explain in Block VIII) with reclamation standards (California NA = Not Applicable for this Operation (use this Code of Regulations, Title 14, Division 2, notation when an issue is not addressed in the Chapter 8, Subchapter 1, Article 9, Section reclamation plan, or when the reclamation plan 3700 et seq.) contains no requirements related to the issue VN = Inspected, Violations Noted listed). Weather Codes: CR = Clear; CL = Cloudy; RN = Rain; SN = Snow; WD = Windy Approximate Disturbed Acreage: Indicate all acreage disturbed by the surface mining operation, as defined by PRC Section 2729: "Mined Lands" includes the surface, subsurface, and ground water of an area in which surface mining operations will be, are being, or have been conducted, including private ways and roads appurtenant to any such area, land excavations, workings, mining waste, and areas in which structures, facilities, equipment, machines, tools or other materials or property which result from, or are used in, surface mining operations are located. For "Duration of Inspection", indicate the number of hours spent at the site (round to the nearest half hour) performing the inspection (do not include travel time in this figure). Status of Operations Codes: I = Bile A = Active during inspection AD = Active during past year Status of Reclamation Codes: R = Reclamation in progress RN = Reclamation not begun AB = Abandoned (site deserted by operator) MC = Mining completed RC = Reclamation complete P = Post reclamation monitoring BLOCK VIII: Inspectors may use this area for comments, to describe violations, correction orders, etc., and to explain any limitations to the inspection conducted. You may attach copies of any notices of violations and orders to comply in lieu of a description on this form; however, copies of such notices and orders must be attached to each copy of this Inspection Report. BLOCK IX: Enter the number (quantity) of violations noted during the inspection. Sign and date the Inspection Report. DISTRIBUTION INSTRUCTIONS: The original and one copy of this completed Inspection Report (all pages) shall be given to the Mine Operator. The Lead Agency must retain one copy of this Inspection Report and submit one copy of this Inspection Report to: Department of Conservation Office of Mine Reclamation Sacramento, CA 95814-3529 801 K St, MS 09.06, If any part of the operation inspected is on BLM or USFS land, one copy of this Inspection Report should be forwarded to the appropriate BLM or USFS office. The Mine Operator must attach one copy of this Inspection Report to the next required Mining Operation Annual Report (Form MRRC-2) submitted to the State. PLEASE NOTE: A Memorandum of Understanding between the U.S. Department of Interior, Bureau of Land Management (BLM); U.S. Department of Agriculture', Forest Service (USFS); the State of California, Department of Conservation; and the State Mining and Geology Board, effectively implements California's Surface Mining and Reclamation Act on lands in California under the jurisdiction of BLM and the USFS. M6 All 'Ifg -c-P, Pr � Mill, I i I J ANY 1 14 Entrarice to Mine shaft -that has. been flooded from the pond that catches -on-site drainage.,:`,' •�,a � ` � Z 1 fl M - Y � ..� A' � � `j iY-'. � �M 7 � ! `�" ,�. q lei t 'l ': ,1., p s _, •�"'• int . „y rsk :e ... ..t, `,a- eh lei tz r r i a i BLUE LEAD MINE/,91 04-0020 Photographs 11-7,-06 r .kr r t. 1•ti .. . a a ny4 it M'• � � < `'Y n rr Entrarice to Mine shaft -that has. been flooded from the pond that catches -on-site drainage.,:`,' •�,a � ` � Z 1 fl M - Y � ..� A' � � `j iY-'. � �M 7 � ! `�" ,�. q lei t 'l ': ,1., p s _, •�"'• int . „y rsk :e ... ..t, `,a- eh lei r r i a - .kr r t. 1•ti .. . a a � � < `'Y n rr r � '`+ ti� 111•'y�.i+ � F �.., Am) � � � i3 t' L � .6 t,. f t .>., r .. . . 6�� � _M1•r�� dqq y. two. C `i • 1� 11 A • •• .• 1. •n >� H "if t"' } ��,� ' a•' to r {; < ♦ ,' t .' 'i .x sS'tM� o `r•'�`Y Wi 5�t 3•ati,"t _+ w. �A 'l` p eq � �� ; dµ���. �,w:�m..3�.�' ��*�Y • 'L.i "i'�e Hy� 3 � i' � � t>t;3t ��,, !s� 1 . y� ,�lf Y Tl `!k i 3p. kR'� ,} ;y �y.,i ' t}'T,d.'sEt\� •p �r� ���.v�a.dl x� r�y..�}`.��^}}.�'�y e' A„�443f Y\ ��q .� �Y,€2 fi},,.+�,".� f r-t c�'r�a� `u,�'..,v tS�i'� �) }�.�yJ i)e ,� n i�=513,tt_l31 'E i ;,:Si f j aY arm-RU .'"PF' r r• �€ a♦..�h.s.. � WIT. �� K^l: _ .. ei♦v ��v'vc '4.'A ��` ,� !e !Y'.t .�y `y 't �..t �i'S� a' •� ,�. n� m ^ A •a ip a> h tl ^ `�dt a ,. ,€ r� _-yam ` tt•• Cdr S: � �', " �3„ _»�.„ � ''?. .f' rz. ��;v+.sw ''' . ;�� ,•r�,.�. . �• �"t. �, t ¢ • �+y. 1°� .iJ^`��'4h+F4}�.'�il" � y �an :iw. F �§ 1+ .y,. a^l 9 3 (jP�'t.. -,�A .. �:.t ."?�S i2.. 'v.Y3,. �; .m�.:Yer-.•.,<'�T-�.a, „�'�'T^h'f�'''}1'be f'lM�>fs �T.,%H^°,"��* �4' .S = ✓'- y�'s-0t, S� •d� _ vq6>fl`V •�^,"�4 " Q�r S-v'f1iJ _.Q4����a}:.'4'-"a. Y�+ e. ��iy'�"�-5, �., t�s All "� 4-y J, ':o "�, A K3Y, t'�•�4 a�a��` & i�r ,a 1' .�- f � .{u g �rr� gl.%"� '' T f.�X',J .• vis .,� `^ `�,�s.rs"'�i�s�,A..f:r�,�L.s� '�;''.rs���r,:.�P�r,°�.'�..�y',ia,��aa��,.i�...•.'. A F'�3UTTNTV°� � , �, OU JUN 2 8 2007 DEVELOPMENT ;: SERVICES 1 • BUTTE • COUNTY JUL 10 2007 State of Califomia DEPARTMENT OF CONSERVATION DEVEiLOt HIEN f 2006 MINING OPERATION ANNUAL REPORTSERVtCES CA MINE ID # 91- 04-0015 MRRC-2 Page 1 MINE NAME Morris Ravine Mine 1. Company Operating Site Contact Person Telephone Mineral Resources, LLC Jim Prouty (530) 534-9565 Street Address/P.O. Box No. City Stare/ZIP Code/County P O Box 5490 Oroville CA 95965 2. Designated Agent's Name (individual must reside in CA) Mailing Address Jim Prouty P O Box 5490 City ZIP Code Telephone Oroville 95965 ( 530 ) 534-9565 ITEMS BELOW WHICH ARE PRECEDED BY A BOX LABELED N.C. MAY BE CHECKED -1E THERE ARE NO CHANGES IN THE INFORMATION FROM THE LAST REPORTING YEAR. (NOTE: IF THIS IS THE FIRST TIME YOU HAVE FLED A REPORT, ALL SECTIONS MUST BE COMPLETED.) 3. Owner of Mining Operation Telephone MRLLC Investors LTD 1 (214)855-0550 Mailing Address (this address will be used to send next year's report form) 2311 Cedar Snrinas RD Suite 100 City State2lP Code Country (If other than U.S.A.) Dallas TX 75201 Was this operation purchased by you during reporting year? Was this operation sold by you during reporting year? [:]Yes. If yes, date of purchase ® No. ❑ Yes. If yes, date of sale ® No. 4. Landowner Asmssor's Parcel # MRLLC Investors LTD 41-300-03 Mailing Address Telephone 2311 Cedar Springs RD Suite 100 ( 214) 855-0550 City/StateOP Code Country (If other than U.S.A.) Dallas` TX 75201 b. Status of Mining Activities DURING THE REPORTING YEAR ❑ Newly Permitted -Not yet in operation. Date Permitted ® Active. ❑ Idle (as defined in Public Resources Code Section 2727.1). Complete the following: Date operation became idle ❑ Copy of Approved Interim Management Plan attached. ❑ Interim Management Plan pending with Lead Agency. ❑ Closed with no intent to resume. Date mining ceased ❑ Closed—reclamation certified complete by Lead Agency. Date mining ceased 6. Status of Reclamation Activities DURING THE REPORTING YEAR ICkwgKl,IIONLIf;� ® Reclamation not started. ❑ Reclamation in progress (attach updated reclamation plan map indicating progress). ❑ Reclamation certified complete by Lead Agency/1'I"1AHiC6 1IPicAiti Reclamation certified complete on (Date). Financial Assurances released on (Date). DISTRIBUTION: Original to State Copy to Lead Agency Copy to Ope^ator State of California DEPARTMENT OF CONSERVATION 2006 MINING OPERATION ANNUAL REPORT MRRC-2 Page 2 CA MINEW 91- 04-0015 7. ® Yes ❑ No Inspection completed by Lead Agency during the reporting year. If yes, attach a copy of the Surface Mining Inspection Report (MRRC4). If inspection report is not attached, please explain on Page 4. ® 1 8A SMARA Lead Agency (city OR county ONLY) N.C. 8B. Reclamation Plan Status GHECK(ON ❑ No Plan ❑ Approved on (date). Attach copy with amendments, conditions, and PROOF of approval. Number of acres subject to Reclamation Plan ❑ Pending. Submitted to Lead Agency on (date). ATTACH!PROOF SUBMITTAL ❑ On Appeal. Submitted to SMGB on (date), 9. Yes: Financial Assurances approved by Lead Agency.AT7AClI" 61 Pi AND'R F.'OFI_!►ppR_OVA_ Complete below for approved Financial Assurances: Date of Annual Review Expiration Date or Amount Typo Data Posted by d Ronowd Doto (if appliooblo) $50,000 I. Letter of Credit 9-16-03 '��-=�6 Continuous ❑ No: Financial Assurances NOT approved by Lead Agency. ❑ Financial Assurances pending with Lead Agency. Submitted on (date) c . IF APPLICABLE, INFORMATION REQUIRED IN ITEMS 10 THROUGH 13 MUST BE PROVIDED FOR EACH SEPARATE PLOT IN 10. ATTACH NAMED U.S. GEOLOGICAL SURVEY MAP —7.5' OR 15' QUAD—SHOWING BOUNDARIES OF MINING OPERATION N.C. Latitude Longitude Section—Township---Range—Base Meridian Quad Name County ® 11. Type Code(s) of Mining Operation ISEE(EXH®I[r1A1E0Ri1YP.EiC0DESI N.C. 12. DISTURBED ACREAGE i 1.10 Approximate disturbed acreage at beginning of 2006. (This figure should match the figure fro n item 12, line 5 on your 2005 annual report. If it does not match, please explain on Page 4.) 2. _L_Approximate acreage disturbed during 2006. 3, 10 (ADD LINE 1 TO UNE 2) 4, Approximate disturbed acreage reclaimed during 2006. 5. 0 (SUBTRACT LINE 4 FROM LINE 3) Approximate disturbed acreage remaining at end of 2006. ® 13. bliEC AL1iTHATiAPP.L _ N.C. ❑ Acres Permitted: & Permit # ❑ Acres Vested (Acres disturbed prior to January 1, 1976) ❑ Acres on Federal Lands: & Permit/ID # ❑ 14. N.C.$2,275,529 Current total assessed value of mining operation as established by County Assessor's Office. DISTRIBUTION: Original to State Copy to Lead Agency Copy to Operator State of Calitomia DEPARTMENT OF CONSERVATION 2006 MINING OPERATION ANNUAL REPORT CA MINEID# 91- 04-0015 MRRC-2 Page 3 15. COMMODITIES AND PRODUCTION PRODUCTION INFORMATION IS PROPRIETARY AND $E EXk11817p$�FORCt?IwMt E$ANb_IINI pFs1NEAliRE' WILL BE KEPT CON=IDENTIAL PURSUANT TO PUBLIC RESOURCE CODE SECTION 2207(g) 16. FEES SCHEDULE USING BOTH YOUR CATEGORY NUMBER AND TOTAL PRODUCTION FROM 15(A) ABOVE, REFER TO EXHIBIT C TO FIND YOUR CORRESPONDING PRODUCTION RANGE. ENTER YOUR CORRESPONDING PRODUCTION CODE IN 16(A) AND FEE IN 16(B) BELOW. A. PRODUCTION CODE.. ,FROWEXHIBIT C B. REPORTING FEE......... PROIVIExHlt3f ......................... $ 4,409 GOLD AND SILVER FEE: IF GOLD OR SILVER PRODUCTION IS REPORTED IN SECTION 15(A) OR 15(8), CONTINUE ON TO COMPLETE 16►C) AND (D) C. GOLD FEE ( Ounce(s) of gold) X ($5.00 per ounce) = $ 0.00 D. SILVER FEE ( Ounce(s) of silver) X ($0.10 per ounce) = $ 0.00 TOTAL FEES DUE: SUM OF 16(B), (C) AND (D) $ 4,409 6AX (ATTACH ONE CHECK FOR TOTAL) 17. SUBMITTED BY: Name (Please print) Jim Prouty Mailing Address P O Box 5490 City/State/ZIP Code Oroville, CA 95965 Telephone Number (530 )534-9565 I certify that the information submitted herein is complete d accurate (fail to subm' complete and accurate requisite information may result in an administrative penalty as provided for in Public Re6urces Code S ion 277 SIGNATURE OF SUBMITTER TITLE OF SUBMITTER DATE 7-03-07 Please mail annual report, reporting fee, gold and silver fee and ALL required attacKments to: DEPARTMENT OF CONSERVATION Office of Mine Reclamation 801 K Street, MS 09-06 Sacramento, CA 95814-3529 DISTRIBUTION: Original to State Copy to Lead Agency Copy to Operator Check here if TOTAL PRODUCTION Category No GI1Ea_K`bNE Number Production List All Commodities Silica Sand (from Exhibit B) (from Exhibit B) for a Commodity Amount of Troy Production Tons Ounces Pounds A. PRIMARY COMMODITY PRODUCED BY OPERATION: 1 1 1 59,370 1 X B. ALL OTHER COMMODITIES PRODUCED BY OPERATION (include any production of gold and silver); 16. FEES SCHEDULE USING BOTH YOUR CATEGORY NUMBER AND TOTAL PRODUCTION FROM 15(A) ABOVE, REFER TO EXHIBIT C TO FIND YOUR CORRESPONDING PRODUCTION RANGE. ENTER YOUR CORRESPONDING PRODUCTION CODE IN 16(A) AND FEE IN 16(B) BELOW. A. PRODUCTION CODE.. ,FROWEXHIBIT C B. REPORTING FEE......... PROIVIExHlt3f ......................... $ 4,409 GOLD AND SILVER FEE: IF GOLD OR SILVER PRODUCTION IS REPORTED IN SECTION 15(A) OR 15(8), CONTINUE ON TO COMPLETE 16►C) AND (D) C. GOLD FEE ( Ounce(s) of gold) X ($5.00 per ounce) = $ 0.00 D. SILVER FEE ( Ounce(s) of silver) X ($0.10 per ounce) = $ 0.00 TOTAL FEES DUE: SUM OF 16(B), (C) AND (D) $ 4,409 6AX (ATTACH ONE CHECK FOR TOTAL) 17. SUBMITTED BY: Name (Please print) Jim Prouty Mailing Address P O Box 5490 City/State/ZIP Code Oroville, CA 95965 Telephone Number (530 )534-9565 I certify that the information submitted herein is complete d accurate (fail to subm' complete and accurate requisite information may result in an administrative penalty as provided for in Public Re6urces Code S ion 277 SIGNATURE OF SUBMITTER TITLE OF SUBMITTER DATE 7-03-07 Please mail annual report, reporting fee, gold and silver fee and ALL required attacKments to: DEPARTMENT OF CONSERVATION Office of Mine Reclamation 801 K Street, MS 09-06 Sacramento, CA 95814-3529 DISTRIBUTION: Original to State Copy to Lead Agency Copy to Operator :tate of California )EPARTMENT OF CONSERVATION )FFICE OF MINE RECLAMATION IRRC-1 Page 1 of 3 (Rev. 09/05) SURFACE MINING INSPECTION REPORT Instructions for completing this form are on the reverse side. Attach notice(s) of violatlon(s) and order(s) to comply for all ooserved non-compliance. I. Mine Name as reported by Operator on Mining Operation Annual Report Inspection Date: CA MINE ID#: MORRIS RAVINE MINE/MINERAL RESOURCES LLC 11-27-06 91-04-0015 II. SMARA Lead Agency Name (Qty or County only ) Butte County Inspector 'Telephone Ignacio Gonzalez and Zachary Thomas (707) 332-6263 Telephone (530) 8943469 Title Organization Contract Planners X FAX 530 5349564 Planning Division Mailing Address 7 County Center Drive • City Slate ZIP Code Oroville California 95965 E-mail Aaore55 (UP00nal) I noonzalezOpacificmuniciaf�l.00m . and zthomas(a)oaclficmunid a� Lcom III. Mine Operator P Mineral Resources LLC No Contact Person A permit to mine? Telephone Jim Prouty D (330) 534-9565 An approved Reclamation Pian? X FAX 530 5349564 Mailing Address RP # RP -93-36 P. O. Box 5490 Is this operation on Federal Land? Check one: If "Yes", provide one or both of the Federal Mine Land Identification Numbers below: City State 2IP Code Orovflle � California 95966 E-mail Address (Optional) IV. Does the operation have: P NR No Yes A permit to mine? X D Permit # MIN 93-36 An approved Reclamation Pian? X 13 0 RP # RP -93-36 Has the operator filed a Mining Operation Annual Report (form MRRC-2)? Check one: X Yes (6/30/06) ❑ Nb ❑ Unknown Is this operation on Federal Land? Check one: If "Yes", provide one or both of the Federal Mine Land Identification Numbers below: ❑Yes X Nc California Mining Claim Number (CAMC#): N/A U.S. Forest Service Identification Number (USES ID#): N/A ASTRIBUTION: Original to Operator. Copies to: State (by Lead Agency), Lead Agency, State (by Operator), and BUY! or USES (if required). i ! , State of California DEPARTMENT OF CONSERVATION ' OFFICE OF MINE RECLAMATION MRRC-1 Page 2 of 3 (Rev. 09105) ` L SURFACE MINING INSPECTION REPORT t' V. Does the Operator currently have a Lead Agency approval Financial Assurance? Inspection Date:. " CA MINE ID#::_ Check one: X Yes ,- ' ❑ No ff "Yes°, complete section below. ff'Ne, refer to instructions on the reverse of this page and complete Section VI. November Z7,2006 V. Does the Operator currently have a Lead Agency approval Financial Assurance? Inspection Date:. " CA MINE ID#::_ Check one: X Yes ,- ' ❑ No ff "Yes°, complete section below. ff'Ne, refer to instructions on the reverse of this page and complete Section VI. November Z7,2006 91-040015 , Type of Financial Assurance Mechanism(s) FinancialAssurance Mechanism Number(s) Current Amount on File Date of Expiration ❑ Surety Bond $ F ❑ Certificate of Deposit t $ X Letter of Credit ~,Letter of Credit* SW30 $50,000.00 Continuous ❑ Trust Fund $ 6 ❑ Pledge of Revenue $ ❑ Budget Set.Aside - • $ ' ❑ $ The Financial Assurance Amount must be addusted annually. . Attach a copy of the revised Date of Financial Assurance Financial Assurance Amount calculation with this -report Amount Calculation: 11/27/06 ` 'No°, date operator was notified that a new mechanism is Does the current mec hanis'1 (s).on file cover the new annual catailation? X Yes ❑ No tired: October 24, 2006 (see attached copy of letter) VI. Financial Assurance comments. As of the inspection date, the required annual cost estimates required under SMARA had not been submitted for -Planning StafNeview. The Wine operator has been notified of the requirement to submit the annual cost estimates. See attached copy of letter sent to mine operator requesting the annual cost estimates., Current Bond is a Corporation Surety Bond on state approved form per PRC 2773.1. The current tetter of Credit was issued by Wells Fargo Bank, NA The current letter of credit was originally issued on September 16, 2003, which automatically renews annually. The current letter of credit contains a provision hat provides a 120 day notification to both the County and OMR in the evert of revocation or nonrenewal. The operator has been notified m provide to the County by December 31, 2006, revised cost estimates for the financial assurance calculations. Staff believes that the current amount ($50,000.00) is not adequate for the reclamation and equipment removal from the site should the County and Sate need to reclaim the site. Attached are photographs of the site that illustrate staffs findings. Upon receipt of revised cost estimates, County/PMC staff W11 submit to OMR for review and approval. The operator will then be required, to submit a revised financial assurance mechanism that is acceptable to both the County and OMR It should be noted that the operators have submitted a modification request to expand the operation, and therefore a recalculation of the financial assurances will also be wired as part of the a)q)anion 'DISTRIBUTION: Original to Operator. Copies to: State (by Lead Agency), Lead Agency, State (by Operator), and BLM or USFS (Fr requiro. State of California DEPARTMENT OF CONSERVATION OFFICE OF MINE RECLAMATION MRRC-1 Page 3 of 3 (Rev. 09/05) SURFACE MINING INSPECTION REPORT VII. Is the operation in compliance with provisions of the approved Reclamation Plan with respect to: OK VN NI NA CA MINE ID # 91 —04-0015 Wildlife Habitat X ❑ ❑. ❑ Inspection Date: 11-27-06 Revegetation ❑ ❑ ❑ X Agricultural Land ❑ ❑ ❑ X Weather Code(s): CL Stream Protection X ❑ ❑ ❑ rDuratlor of Inspection: 1 Hour Tailings and Mine Waste Management X ❑ ❑ ❑ Closure of Surface Openings X ❑ ❑ ❑ Approximate Disturbed Acreage: 10 -acres Building, Structure, and Equipment Removal X ❑ ❑ ❑ Topsoil Salvage, Maintenance, and Redistribution X ❑ ❑ ❑ Status of Operation Code(s): A Backfilling, Regrading,. Slope Stability, and Recontouring X ❑ ❑ ❑ Drainage, Diversion Structures, Waterways, and Erosion X ❑ ❑ ❑ Status c# Reclamation Code(s): RN Other (list or explain below) ❑ ❑ ❑ ❑ VIII. Comments/Description of Violations) and Corrective Measure(s) Required [NOTE: please Indicate If you have attached wbce(s) of violation(s) and connection order(s), In lieu of description on this form]: The site was permitted In 1993 for the removal of silica sand. The project site consists of approximately 10+/- acres of disturbed area that was previously disturbed by mining operations In the past The site Is located on the east side of Cherokee Road, near the intersection of Shirmer Ravine Road. Because of the site's geology, basalt outcrops are also prevalent on-sibe. When the site is completely mined and fully reclaimed, the site t to be converted to a grazingtagricultural area. When Inspected, staff noted that reclamation had not yet begun. The day the site. was Inspected, was post rain storm. It was further noted that erosion is being adequately controlled on-site. Water used In the processing of the mined sand material Is also recycled and run through a water clarifier. The on-site water storage ponds were also Inspected and found to have adequate storage capacity. The operator was notified of the requirements to submit the required annual cost estimates. Upon receipt of the requested.In§DrmatIon of the operator, the County of Butte will forward all documents to OMR for review and approval. Attached are photographs depicting Inspection findings. Cost Estimates are to be revised and updated. Upon receipt from the operator, The Planning Division will submit to OMR for review and approval. It was noted that unpermitted mobile homes and trailers are located on the property. The operator was Informed that the units must be removed or permitted. The operator indicated that they would comply. Staff will conduct another Inspection within 90 days to verify that this violation has been resolved. . D(. Number of Violations:. 1 Inspector's Signature: --? - 7�, Date Signed: November 28, 2006