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March 10, 2015 C -1981- 016 /Hawk Nest E & W JRS <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA Not Applicable <br />N - Air Resource Protection N - Roads <br />N - Availability of Records R - Reclamation Success <br />R - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife N - Support Facilities On -site <br />R - Hydrologic Balance N - Signs and Markers <br />N - Gen. Compliance With Mine Plan N - Support Facilities Not On -site <br />N - Other N - Special Categories Of Mining <br />N - Processing Waste N - Topsoil <br />COMMENTS <br />This was a complete inspection of the Hawk's Nest Mine conducted by Jim Stark of the Colorado Division of <br />Reclamation, Mining and Safety. The permit for the mine was revoked, the bond was forfeited and the <br />reclamation was completed by the Division through third party contractors. On 24 February 2015 the Division <br />proposed a decision to approve SL -01. This is a termination of jurisdiction for the entire site. The Division's <br />proposed decision was published on 4 March 2015. The public comment period will end on 3 April 2015. If no <br />comments or objections are received the decision will become final. The weather was warm and sunny and the <br />ground was dry. <br />BACKFILL and GRADING — Rule 4.14: Contemporaneous Reclamation 4.14.1; Approximate Original Contour <br />4.14.2; Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials <br />4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />- All of the backfilled and regraded areas at the East and West Mines and the Bleeder Entries remained stable at <br />the time of the inspection. There were no signs of any settling, slumping or cracking in the backfill. There were <br />no erosional problems noted on any of the areas. <br />HYDROLOGIC BALANCE - Rule 4.05: Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />- The two post- mining drainage channels, one at the lower East Mine and one at the upper West Mine, remained <br />stable at the time of the inspection. Both channels are riprapped channels with a large amount of vegetative <br />growth. There were no erosional problems noted in either of the channels. <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 5 <br />Page 2 of 9 <br />