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October 24, 2017 <br />X-2007-230-00/Deserado Mine -Exploration 2007 JDM <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 <br />N - Backfill & Grading <br />N - Fish & Wildlife <br />N - Hydrologic Balance <br />N - Gen. Compliance With Mine Plan <br />N - Other <br />N -Roads <br />NA -Reclamation Success <br />N - Revegetation <br />N - Slides and Other Damage <br />N -Signs and Markers <br />N -Topsoil <br />COMMENTS <br />This report represents a coal exploration bond release inspection conducted by Jason Musick of the Division of <br />Reclamation, Mining, and Safety (Division). A request for full bond release was received by the Division on <br />August 30, 2017. This bond release inspection included the inspection of 30 sites which have been drilled, <br />abondoned, and reclaimed. The 30 sites inspected are associated with five NOIs, X-2007-23-00 (3 sites), X-2008- <br />230-01 (2 sites), X-2008-230-02 (7 sites), X-2011-230-03 (15 sites, and X-2013-230-04 (3 sites). Scott Wanstedt <br />of BME, Inc and Jennifer Maiolo accompanied the on the ground inspection. The weather was clear and the ground <br />was dry. <br />RECLAMATION SUCCESS - Rule 2.02(g) and 4.21.2(2): <br />All sites inspected displayed adequate vegetation with little to no noxious or invasive vegetation observed. No <br />evidence of instability or erosion was observed during the on the ground inspection of the sites. All holes were <br />sealed and covered with topsoil. All 30 holes were marked with brass caps displaying the hole number. A number <br />of the sites were in the area of the Dead Dog Fire and showed evidence of burning. Although these sites have been <br />burned, adequate vegetation has been established and in all cases the vegetation growth observed on the sites was <br />better than the adjacent burned area. No issues were identified and all disturbances were adequately reclaimed. <br />Based on the on -the -ground observations of these sites a full bond release should be granted. Examples of the sites <br />are noted in the photographs below. <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 6 <br />