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(Page 2) MINE ID # OR PROSPECTING ID # M-1977-424 INSPECTION DATE 8-22-2003 INSPECTOR'S INITIALS SSS. GRM This was a routine monitoring inspection conducted as part of DMG's ongoing monitoring program for permitted mines in Colorado. The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. No significant erosional features were noted on the affected areas of the site. No significant infestations of noxious or other problematic weeds were noted on the portions of the site observed during this inspection. However, some occurrence of Yellow spine thistle will need to be treated and monitored so it does not overtake the site. A very small amount of water was noted in the leak detection sump at the evaporation pond. It does not appear that this is anything more than precipitation that seeped in through the leaky capon the sump. However, the operatorwill need to watch this closely to determine id patch repairs are needed on the pond liner. The pond had only a few inches of water in it, along with an abundance of salt crystal deposition. The upper portions of the site, above, adjacent to, and just below the vent fan appear to be ready for release from further reclamation responsibility. The operator is encouraged to apply for release of any portions of the site that have been reclaimed to the specifications of the reclamation plan. The specific area designations of each of these reclaimed locations are unknown due to the lack of a detailed site map and reclamation map in the DMG Grand Junction Field Office files. The operator representative indicated that copies of these maps could be provided to this office. These maps would be most appreciated. Reclamation of the facilities area around the portals and mine dumps is occurring. Currently, hand dug benches are being excavated on the mine dumps, in an effort to establish better microclimate for establishing islands ofvegetation. The benches are not part of the reclamation plan, but should greatly increase the chances for successful vegetation establishment. While digging the benches, the crew is removing all exposed refuse from the waste dump surtace. While reviewing DMG files for this mine, several deficiencies were noted in the permit records. First, the Reclamation Plan calls for the portals to be blocked and sealed. Clearly, with the mine water issues, a simple portal seal will most likely not bean adequate method for sealing this mine. This was made more evident by the failure of the Technical Revision No. 2 water management practice. The permit will need to be revised to indicate how the portal seals will be designed to account for the hydrologic conditions that can reasonably be expected in the mine location in the future. Second, the Reclamation Plan does not clarify how the evaporation pond will be removed and disposed of. The permit will need to be revised to indicate how reclamation of this pond will take place and where and how the liner and the evaporated salts will be properly disposed of. Thirdly, it was noted that the pilot water treatment plant, specified by Technical Revision No. 3 has been operational, but had some technical difficulties, and is currently shut down. Review of TR-03 identified that the financial warranty increase of $2,245.00, required for TR-03 to be approved, was never submitted to DMG. Therefore, TR-03 was never officially approvetl, the pilot plant iscurrently anon-compliance site feature, and the site is currently under-bonded. If adequate financial warranty is not received by DMG by October 17, 2003, this issue may be brought before the Mined Land Reclamation Board as an enforcement action. The operator representative indicated a desire to leave the chain link mesh rock fall protection on the faces of the portal bench highwalls. This proposal is not an option because of the high probability that this chain link would eventually fail, possibly with more hazard potential than there would be if the mesh were not left in place. Failure of the mesh would then result in unreclaimed waste on the site.