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PERMIT #: M- 1998 -067 <br />INSPECTOR'S INITIALS: TC1 <br />INSPECTION DATE: June 19, 2014 <br />Bond: <br />The currently held bond is $49,000. This bond is based on a maximum disturbance of 20 acres at one time <br />approved in the 1998 application. The financial warranty was increased 2004, apparently based on a <br />discussion with the Operator during the May 27, 2004 inspection, citing a maximum 25 -acre disturbance and <br />the need for a $2,000 /acre bond. Note the Division received a bond increase to the currently held $49,000, <br />instead of $50,000 needed to meet the $2,000 1acre for 25 acres. The Division has no record of any revision to <br />increase the maximum affected area beyond the originally approved 20 acres. However, the current bond <br />held by the Division is deemed adequate for the current 5 acres (2015 annual report) of disturbance at <br />$9,800 /acre. If the Operator wishes to increase the maximum allowed disturbed area beyond the currently <br />approved 20 acres, a technical revision will be required to document the change. <br />Summary and Recommendations: <br />1. The Operator needs to formally request an increase in the maximum affected area through a technical <br />revision if the currently approved 20 acres of disturbance is inadequate for future mining plans. <br />2. A records review found a blasting plan was submitted to the Division on 7/22/2002. The Division's <br />database has been updated to reflect compliance with Stipulation No. 1. <br />3. Stipulation No. 2 has not been complied with. The Operator must submit a Technical Revision to <br />update the mining plan map prior to conducting any mining in areas B,C,D,E,G, and H. <br />4. The financial warranty has not been updated in since 2004. However, because the currently affected <br />area is well below the maximum allowed 20 acres, the current bond is considered adequate. <br />PHOTOGRAPHS <br />P <br />Photo 1 <br />1 <br />Permit identification sign. <br />':rwMM <br />Page 3 of 6 <br />