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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1986-160 <br />INSPECTION DATE: 8/3/04 INSPECTOR'S INITIALS GRM <br />OBSERVATIONS <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Minerals and Geology. The perrnitee's representative Alan Parkerson accompanied the inspector during the <br />inspection. The Sunnyside Pit is located east of Molina, Colorado on the north side of state Road 330. <br />The Sunnyside pit is a 110c permitted site. No current excavation was noted during this visit. Annual reports note <br />sales from stockpiles and maintenance projects. Most ofthe site is currently disturbed with an operator estimated 40 <br />to 50 thousand tons of material left to mine before reclamation can commence. <br />The mine identification sign and affected area boundary markers are in place and incompliance with Rule 3.1.12. <br />The sign is posted at the scale house and boundaries are primarily fence lines and other easily distinguishable <br />markers. <br />The site has not begun reclamation as noted above. The operator has an active weed management plan in progress. <br />Canadian thistle was noted on site. The plants were definitely stressed due to spraying a few weeks ago. No other <br />noxious weeds were noted: Annual weeds such as kochia, Russian thistle and halogeton were noted but not a <br />problem. <br />The mine has a very high highwall of approximately fifty feet or so. The high wall is stable material with minor <br />sloughing do to erosion. There appears to be sufficient room at the top to push materials down to establish slopes <br />after the final materials are excavated. <br />No hazardous materials, debris or other unsightly issues were noted. <br />Stormwater control appears to be controlling flows on site to a central point to the south. No erosion or <br />sedimentation issues were noted. <br />The bond was recalculated in 2001. Site conditions have not changed so a re-calculation is not warranted at this <br />time. <br />No other issues are noted at this time. <br />Responses to this inspection report should be directed to Russ Means at the Division of Minerals and Geology, Grand Junction <br />Field Office, 101 South 3rtl Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. <br />I & E Contact Address cc: <br />X CE Milt Derrick <br />NAME: Alan Parkerson ^ BL <br />OPERATOR: Parkerson Construction ^ FS <br />STREET: 710 S. 15~' Street ^ HW <br />CITY/STATE/ZIP: Grand Junction. CO 81501 ^ HMWMD (CH) <br />^ WOCD (CH) <br />^ OTHER <br />