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(Page 2) MINE ID # OR PROSPECTING ID # M-1982-033 INSPECTION DATE 5/5/03 INSPECTOR'S INITIALS RCO OBSERVATIONS This partial monitoring inspection was performed by the Division while onsite to inspect an overlapping 111 permit (M-1997- 044) for release. Other recent inspections were conducted at this site by the Division to verify adequacy of reclamation and bond amount. Though the site was inactive at the time of the inspection, the operator named on page one was present onsite during a portion of the inspection. Grading of most of the highwalls of the active pit has been completed, leaving a limited amount of grading to be carried out. The crusher is set up near the south highwall, but there was no processing or hauling occurring during the inspection. The operator has recently performed the pit slope grading of all highwalls left at the conclusion of the 111 permit operation. With this f Wished, and the release of the 111 permit, the operator has agreed to become responsible for the 111 operator's pit and stockpile areas. Though these are "reclaimed" according to the minimal reclamation plan currently approved for this permit, they have been disturbed and may be more prone to erosion or weediness. The operator will have to monitor these areas "inherited" from the former 111 operator, and ensure that no undue degradation occurs, which could act to cause more bond to be required. The operator has maintained the required permit ID sign at the NE entrance gate, and numerous permit boundary markers were observed installed along the boundary. However, more markers are needed, especially at the NE corner, along the eastern boundary, SE corner, NW corner and along the northern boundary. Please be reminded that boundaries are 200 feet away from the N and E fencelines, and that all onsite haul roads and stockpile areas are to be kept inside these boundaries. The manner in which the operator has marked the SW boundary at regular intervals, and the N boundary at the W pit highwall is a good method to continue to use. The knapweed patch in the 111 permit stockpile area was inspected. All plant material from last year's growth seems to have been removed, as agreed during past discussions with the operator. This shows a good start toward cleaning up the infestation, but also makes it more difficult to find the patch. The patch was found, however, during this inspection, and new growth from the knapweed root system is now sprouting. This noxious weed is not strongly established here yet, and maybe controlled even without chemicals, if the operator checks the patch often and keeps removing all the new growth. With continued and frequesnt cutting, eventually the plants' energy reserves in the roots will weaken, and elimination will be possible. The area of the young plants was marked by 6 small stone cairns, to help the operator in finding the patch again. The plants are now about 2 inches tall, and should be cut soon. There were no additional items observed. No problems exist at this time. All responses or questions about this inspection report should be directed to this inspector at the Division's Durango Field Office. The address is: Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301; telephone 970/247-5193, or fax 970/247-5104. I & E Contact Address NAME OPERATOR STREET CITY/STATE/ZIP Steve Malouff Malouff Construction, Inc. 6496 Malouff Rd. Alamosa. CO 81301 ec: Harry Posey, DMG ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER I, Bob Oswald, certify that on the signature date shown on page one, I deposited a true and complete copy of this entire inspection report in the United States mail, first class ppostage paid,.to the operator of record for this site at the address indicated, and to those others designated in this report to receive copies (DMG personnel excepted). ~~~ ~ ~^ igna ure