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PERMIT #: M- 1992 -016 <br />INSPECTOR'S INITIALS: TC1 <br />INSPECTION DATE: August 20, 2013 <br />File Review Notes: <br />• The total permitted area is 2,496 acres. The maximum allowed disturbed area is 100 acres. <br />• A review of Items 7 through 12 in the 2013 annual report indicates there is between 200 and 220 <br />acres of disturbance within the permit. Item #7 indicates only —80 acres of affected area (Note: <br />affected area includes "mining + incomplete and/or unreleased reclamation). Item # 8 suggests an <br />additional 20 acres of affected area (if it is not included in the 80 acres in Item #7. Item #12 indicates <br />the affected area also includes at least 120 acres (backfilled area). This discrepancy is cited as a <br />problem on page 1 of this report. <br />• The Division has no record of approved or denied acreage release requests with the exception of the <br />current AR -01 now under review. Therefore, all areas listed in the 2013 annual report, Items #7 - #12 <br />are considered affected area. <br />• The previous inspection was performed on 6/4/12. A problem was cited for lack of updated maps to estimate <br />disturbed area and possible exceedance of allowed disturbed acreage. This was abated on 6/24/13 with the <br />submittal of the acreage release request (AR -01). However, as the Division cannot approve the requested release, <br />the exceedance of the maximum allowed disturbance (100 acres) is cited as a problem on page 1 of this report. <br />• There is a $ $281,283.09 financial warranty (corporate surety) for the site. This is deemed adequate under the <br />current approved reclamation plan. <br />• Annual fees and reports are up to date through 2013. <br />• The post -mine land use is wildlife habitat. <br />Current Stipulations: <br />None outstanding. <br />Summary & Recommendations: <br />The Division cannot approve select portions of an Acreage Release request. As Areas 1, A and B are not releasable, the <br />Division will recommend denial of AR -01. <br />The Division estimates the releasable area based on this inspection to be between 100 and 105 acres if the Operator <br />accomplishes the recommendations listed below. <br />The Division recommends the following tasks be completed by the Operator: <br />1. Remove the equipment in Area B. <br />2. Re- delineate the areas requested for release to exclude: 1) the Area A stockpile and surrounding affected area, and <br />2) the area potentially affected by the sediment pond in Area 2; and resubmit an Acreage Release request. (if the <br />new acreage release request is submitted within 60 days of the August 20, 2013 inspection, or October 19, 2013, <br />the Division will not need to re- inspect the site). <br />3. Double check the site accounting of the affected acreage based on the "open bulleted" comments under File <br />Review Notes above, and determine if when combined with Recommendation #2 the affected acreage would be <br />100 acres or less. <br />a. If, after a near future Division approved Acreage Release request, the affected acreage is over 100 <br />acres, the Operator must apply for a Technical Revision to increase the maximum allowed affected <br />area. Note this will also require a bond increase. <br />4. Submit a revised 2013 Annual Report showing area totals in Items #7 through #12 that are affected consistent <br />with the Division's definition of affected area. A blank 2013 annual report form is attached. <br />Page 3 of 6 <br />