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5 <br />April 22, 2005 <br />The Pittsburg & Midway Coai Mining CO. (P&M) <br />4601 DTC Boulevard, Sixth Floor <br />Denver, CO 80237 <br />Fdna Mine, Permit No. C-1980-001 <br />Bond release application SL-9 inspection <br />Apri121, 2005 <br />Participants: <br />Rodney Gaines, P&M <br />Bob Utter, P&M <br />Pat Chaplain, P&M <br />Byron Walker, Colorado Division of Minerals and Geology (DMG) <br />Henry Austin, Office of Surface Mining (OSM) <br />I participated in the above bond release inspection on Apri121, 2005. The participants listed represent al] <br />parties who participated in the inspection. Weather conditions were cool and clear, and ground conditions <br />were moist to wet due to recent snowmelt. Oak Creek was flowing at less that 50 % (visual estimate) <br />of maximum capacity for the culvert supporting the private access road (owned by P&M) crossing Oak <br />Creek at the gated entrance to the mine. Culvert inlet and outlet are stable with no problems noted. <br />The bond release area is 3.3 acres (the lower tipple facility) and is composed of primarily gravel pad areas <br />on both sides of Oak Creek at the gated mine site entrance. As noted above, a private access road owned by <br />P&M crosses Oak Creek at this gated entrance, and is included in the bond release area. Bond release <br />application SL-9 requests Phase I, II, & III bond and liability release on these 3.3 acres, and release of <br />$226,163.00 from the total bond amount. <br />The lower tipple facility reclamation was completed in 1996 and approved as an alternative post-mining <br />land use of commercial /industrial area through DMG Technical Revision 37 in 1998. Rout[ County <br />approved a Conditional Use Permit on Ociober 21, 2004, for a temporary storage area. The Conditional Use <br />Permit was not reviewed during the inspection, and I have not reviewed this permit in OSM permitting <br />records, or the bond release application. <br />Mr. Walker described the nature of the inspection to all participants, and clearly described the bond release <br />area boundaries as we walked the gravel pad areas on both sides of Oak Creek. Permit area boundaries are <br />clearly marked. All areas inspected are stable with no erosion problems evident. I took photos of the bond <br />release area on both April 20 & 21, 2005. I notified Robert Ernst with the USDI /Bureau of Land <br />Management /Little Snake Field Office, Craig, CO, concerning this bond release inspection. We discussed <br />[he bond release application, and Mr. Ernst elected not to attend the inspection. The applicant also provided <br />written notice of the bond release application to this USDI / BLM office. <br />The bond release application's tis[ of all parties who received written notice of [he bond release request <br />was discussed with Mr. Walker, and the list appears to meet the requirements of Colorado Rule 3.03.2. <br />I recommended to the inspection participants that P&M ensure all parties with jurisdiction or interest in [he <br />private access road crossing Oak Creek have been provided written notice as required in Colorado Rule <br />3.03.2. This concluded [he inspection. <br />Please address any questions concerning this inspection report to Henry Austin, Senior Reclamation <br />Specialist, at haustin@osmre.eov or to (303) 844-1400 x1466. <br />