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PERMIT#:PF.Id <br /> INSPECTOR'S INITIALS:RCO <br /> INSPECTION DATE:November 12,2014 <br /> OBSERVATIONS <br /> This was a pre-operation inspection conducted by the Division as follow-up to its approval of a metal <br /> prospecting NOL The operator was not present during the inspection, and the site was not active on the day <br /> of the inspection. <br /> The project involves drilling a series of drill holes on sage-covered rangeland that is managed by the BLM. All <br /> drill sites are accessible via existing dirt roads and dirt two-tracks; no new roads or trails are needed. Most of <br /> the area is level or nearly level. The plan does not involve stripping large drill pad areas or excavating <br /> catchments for drill mud or fluids, and the overall amount of disturbance is anticipated to be very minimal. <br /> The drill sites are arranged in two lines. All sites along the western line were marked by wooden laths; <br /> markers for the sites along the eastern line were not found in the field, but the submitted aerial photos <br /> allowed the Division to inspect the vicinity of each drill site. There was no current drilling disturbance found at <br /> any of the project drill sites. <br /> The Gunnison office of the BLM has submitted to the Division copy of its correspondence to the operator <br /> about the project, and it appears that it may be in the proximity of an area where Gunnison sage grouse is <br /> possibly found. The operator has provided an acceptable bond to the DRMS, and DRMS has approved the <br /> NOL However, before the project may commence,the operator must also receive approval from the BLM, <br /> which may include commitment to mitigate effects to the sage grouse. To-date,the BLM has not approved <br /> the project to proceed. The operator must provide a copy of the BLM's written approval to the Division <br /> (DRMS) prior to commencing activity. <br /> The inspection contact for this NOI is ITC Resources, and no copy of this report is being sent to the operator; <br /> the Division requests that ITC please forward a copy of this report to the operator. <br /> For questions related to this report, please contact this inspector at the Division's Durango Field Office: <br /> telephone 970-247-5193, or 303-866-3567 ext 8175. <br /> All written correspondence should be sent directly to the Division's Denver Office: <br /> Division of Reclamation, Mining&Safety <br /> 1313 Sherman Street, Room 215 <br /> Denver,CO 80203 <br /> Inspection Contact Address <br /> Ken Schaaf <br /> ITC Resources,LLC <br /> PO Box 563 <br /> Delta,CO 81416 <br /> EC: Dave Lazorchak,BLM,Gunnison(via email) <br /> Photographs from the inspection are on the following page. <br /> Page 2 of 3 <br />