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• (Page 21 • <br />MINE ID # OR PROSPECTING ID # <br />INSPECTION DATE t t /23/98 <br />M-87-044 <br />INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of DMG routine monitoring plan for permitted operations. John <br />Dillon accompanied the DMG inspector throughout the inspection. The Walker Pit is approved for <br />3.41 acres affected area, for excavation of alluvial materials from the Animas River channel. <br />Material stockpile area exists along the east bank of the Animas River. Operations were dormant <br />during the time of this inspection. DMG holds 52,500 financial warranty. <br />The Walker Pit is accessed from CR 250, through the ranch yard of Mr. Walker. Mine access/haul <br />road was well maintained. Permit documentation indicates that the access road is permanent and <br />not to be removed during final reclamation of the mining disturbance. <br />Permit area was sufficiently delineated. Previous mining operations appeared to have been limited <br />to approved areas. Excavation operations had not commenced for the year, sand bar was intact, <br />mining equipment and material stockpiles were not observed within the permit area. Stockpile area <br />appeared well vegetated and stable, noxious weed infestation was not observed. Excavation area, <br />located within the river channel, is accessed by one ramp. Access ramp appeared stable and well <br />maintained. Evidence of channel instability, resulting from mining activities, was not observed. <br />Records - DMG records indicate that the operator has submitted the annual fee for 1998. <br />However, the annual report form was returned to DMG without being completed. Please find <br />enclosed, copy of the blank annual report form, as received by DMG. Submittal of an annual <br />report is required by Rule 1.15. Please complete the enclosed annual report form and return to the <br />DMG Durango Office, 484 Turner Drive, Building F, Suite 101, Durango, CO 81301, by December <br />31, 1998. <br />COE Permit - During December 1996, the US Army Corps of Engineers issued Permit No. <br />199475348 to Sandco, for the Walker Pit, under the authority of Section 404 and 401 of the <br />Clean Water Act. <br />Financial Warranty - DMG has reviewed the cost of reclamation for the Walker Pit and has <br />determined that the current financial warranty, in the amount of 52,500, is sufficient to ensure <br />reclamation. <br />I & E Contact Address <br />NAME John Dillon <br />OPERATOR Sandco. lnc. <br />STREET P.O. Box 4440 <br />CITY/STATE/ZIP Durango. CO 81302 <br />cc: Tom Gillis, DMG <br />X COE, Nick Mezei <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD ICH) <br />^ SE <br />^ WOCD ICHI <br />^ Other <br />