Annual Inspections and Financial Assurance Services The point of reference for land, minerals, and environmental resource strategies.

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Ethelbert Briggs
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1 California SURFACE MINING AND RECLAMATION ACT Annual Inspections and Financial Assurance Services The point of reference for land, minerals, and environmental resource strategies.

2 Increased Scrutiny Requires Increased Expertise Lead Agency s Annual SMARA Obligations In 1975, the California Legislature enacted the California Surface Mining and Reclamation Act (SMARA). SMARA is implemented and enforced on the local level. The California Department of Conservation, Office of Mine Reclamation (OMR), provides technical advice to lead agencies. Local lead agencies with mining operations within their jurisdictions must inspect each operation no less than once each calendar year (Public Resources Code [PRC] 2774[b]) and annually review financial assurances (PRC [a][3]). These lead agency duties ensure (1) mine operators comply with the approved reclamation plan and (2) financial assurances accurately reflect the current site conditions such that reclamation can be accomplished if the mine immediately closes. Benchmark Resources is at the forefront of reform for mine inspections and financial assurance cost estimate (FACE) reviews. For several years we have been preparing and implementing our own more comprehensive form for conducting mine inspections and FACE review in anticipation of the growing scrutiny.

3 Annual Inspections Take New Form SMARA requires that all mine inspections be conducted using a form approved by the State Mining and Geology Board (SMGB). SMGB adopted a new inspection form at its July 11, 2013 hearing. The previous form had remained largely unchanged for more than 20 years. The new form requires substantially more detail than previously required. Benchmark Resources is at the forefront of reform for mine inspections and financial assurance cost estimate (FACE) reviews. For several years we have been preparing and implementing our own more comprehensive form for conducting mine inspections and FACE review in anticipation of the growing scrutiny. We actively participated in reviewing and commenting on draft versions of the new SMGB form for the best interest of all parties. Benchmark Resources is already in the field implementing the new inspection requirements under contract to several lead agencies. Benchmark Resources mine inspection and FACE team is led by SMARA permitting and compliance experts. We have more than 20 years experience conducting mine inspections and FACE review on behalf of lead agencies. Our staff includes experienced geologists and mine engineers and scientists who support us in the fields of soils, biology, geotechnology, and hydrology. Our specialized team ensures that annual mine inspections are conducted consistent with SMARA. We can accurately determine whether a mine operation complies with its reclamation plan and, if not, we can offer feasible remedies. Our work program will fulfill SMARA obligations while respecting both the lead agencies and the operators time and resources.

4 Covering Your Financial Assurance The annual review requirements and accuracy of financial assurances are receiving increased levels of scrutiny. The annual inspection form requires the current financial assurance update and the details of the financial mechanism. Annual updates now commonly reflect the California Department of Transportation s equipment rates and prevailing state labor rates. Benchmark Resources staff has prepared or reviewed nearly 800 financial assurances. We can translate site conditions into reclamation tasks, and then ensure that the FACE accounts for these tasks. We are experts at determining whether a FACE includes all necessary tasks and whether the costs for specific reclamation tasks should be adjusted based on current site conditions and reclamation plan requirements. The lead agency can be confident that with Benchmark Resources involvement, the FACE and related financial assurance mechanism on file will be sufficient to conduct reclamation in a manner that returns the site to a usable postmining condition. We are experts at determining whether a FACE includes all necessary tasks and whether the costs for specific reclamation tasks should be adjusted based on current site conditions and reclamation plan requirements.

5 How We Help A lead agency may contract to have inspections conducted by a specialist or team of specialists experienced in land reclamation. Many lead agencies contract this work because they have staffing limitations or want an independent evaluation by reclamation experts. Benchmark Resources staff has a long history of conducting annual surface mine inspections and reviewing financial assurances. We have prepared more mine-related environmental documents, conducted more inspections, and reviewed more FACEs than any other consulting firm in California. We also provide training and technical support to lead agency staff for mine inspections and compliance. As the reporting requirements for SMARA annual inspections and FACE verification become more detailed, and State oversight more stringent, Benchmark Resources has maintained an experienced team with statewide experience to assist your lead agency. We invite you to enlist our team to ensure a smooth, accurate, and confident reporting process that results in local control over mines within your jurisdiction.

6 Leaders in Completing Mine Inspections Benchmark Resources is a multidisciplinary environmental planning company specializing in environmental analysis, permitting, and regulatory compliance services for surface mining throughout California. Our support of SMARA lead agency inspections dates back 15 years. Since that time, our staff has completed nearly 800 annual inspections. The Benchmark team has an unparalleled breadth of mining experience in California Benchmark@benchmarkresources.net Benchmark Land Use Group, Inc.

MEMORANDUM OF AGREEMENT FOR THE IMPLEMENTATION OF SB 181 AMENDMENTS TO THE COLORADO WATER QUALITY CONTROL ACT (25-8-101, et seq)

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