2024-10-10_REVISION - P2003022 - Laserfiche WebLink

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PERMIT#:P-2003-022 INSPECTOR'S INITIALS: ACY INSPECTION DATE: July 29,2024 OBSERVATIONS This inspection was conducted as part of the Colorado Division of Reclamation, Mining, and Safety's (Division)normal monitoring program. The Mahogany Research Project—Prospecting on SFOGI Land is a Hard Rock NOI located in Rio Blanco County. Amy Yeldell and Todd Jesse of the Division conducted the inspection. Samantha Baker, Dillon Berry and Dave Murray represented the Operator. The permitted NOI includes a total of 57.45 acres and has a required bond of$6,666,003. The last acreage reduction AR-4 occurred in 2023. The following pads/locations remain permitted: Pad 6-25, B I 1-26, B-13-2, M7R, M16L5, M17L5, M20L5, Upper Loop Road, Coral Gulch-Met Station, Sagebrush Hill- Met Station, Bar D-Met Station, Moon Lake Electrical Substation, Powerline—25Kv Moon Lake substation to MIT, Powerline — 138 KV to MLS, Powerline - 7.2Kv MLS to MDP/MTE site, and Powerline— 14.4Kv to MDP/MTE site. All hydrology and production wells have been abandoned and pads have been reclaimed. The final reclamation efforts were completed in 2016 and now are awaiting adequate vegetation establishment for release. The past winter consisted of average snow fall and temperatures. The early spring/summer was very cold and plant germination was slow up till mid-June. Summer storms have been infrequent but heavy. Wild horse populations have continued to be a nuisance despite the round up in 2022. Vegetation throughout much of the Piceance Basin is showing signs of overgrazing. Though grazing pressures from the horses' are considerably less at higher elevations sites. Cattle were also observed grazing throughout the private property. Over all pads are stable with no signs of erosion. All mining related debris has been removed from the site(s). Specific observations of each pad/feature are listed below: Moon lake Substation: All equipment has been removed from the substation areas. Foundations and the graveled pad remain in place. Ownership/reclamation liability is unclear. If they are is to be used in the future the NOI can be modified to leave foundations in place if the utility company takes ownership and the landowner agrees. Otherwise, all material should be removed and the area reclaimed. Photo 1. B11-36: Short access road with gate. Weed treatment and spot seeding has occurred over the previous year. The weeds have continued to improve since the previous inspection. A wide variety of native shrubs/forbs are present with some perennial grasses are beginning to establish. Some evidence of grazing was observed but it was less than previous years. The site is dry relative to surrounding area and this the vegetation is not as dense. Continue to monitor establishment. Photo 2 M7R: This pad has been grazed extremely hard over the last month. Most perennial grasses is eaten down to the soil with on the unpalatable reed grass remaining on site. According to the operator grass was knee high in late June. Some hounds tongue were observed. Continue to control populations while awaiting adequate vegetation to establish. Little to no erosion was observed despite being on a steep slope. Drill seed/contours Benching is nearly smoothed out. Photo 3 *M20L5: The two track road to the pad is to remain in place. Vegetation is present throughout the length of the road and appears stable. The pad itself had good overall plant diversity which includes perennial grasses, forbs, and flowers. There are patches where overall desirable plant density is low,but vegetation is present, and site wide sufficient cover has been established. Surrounding vegetation is mostly shrubs and forbs which continue to volunteer and soften the edge of disturbance. Photo 4 Page 2 of 7