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(Page 3) MINE ID # OR PROSPECTING ID # M-1992-045 INSPECTION DATE 09/27/04 INSPECTOR'S INITIALS ESC The operator is required to complete the following corrective actions: 1. Amend the 110(2) permit application to properly reflect the permit area of 3.8 acres. As stated above, the markers delineate the permit area to be 3.8 acres rather than the approved 3.0 acres. Please be reminded that under a 110(2) application, the operator can go up to a total of 9.9 acres. Such amendment must be received by the Division on or before November 30, 2004. 2. Address in the reclamation plan the reclamation of the maintenance building so that the Division can calculate a cost to remove the structure. If the building is to remain as a component of the postmining land use, then approval must be documented by the local land use authority by November 30, 2004. 3. Address the creation and reclamation of the waste pile noted on site. If the pile is to remain in place, the operator will need to address reclamation of the cut slope in the channel to ultimately achieve a 3h:ly slope. If this issue is not addressed by the operator, then the Division will revise the reclamation cost estimate to move the pile back to the cut slopes to achieve a 3h:ly slope as so noted in the reclamation plan. This should be submitted with item #1 noted above. 4. Demonstrate that the operator is in compliance with the permit and applicable Colorado Water Laws regarding the use and exposure of water in the Cashe Creek by November 30, 2004. See page 4 for additional detail and compliance due dates. Notice of any bond increase will be sent under separate cover. I & $ Contact Address NAME OPERATOR STREET CITY/STATE/ZIP Mr. James Van Ella ^ CE ^ BL P.O. Box 2221 ^ Granite, Colorado 81221 `x^ /~ Mr. James Van Ella 180 Lane 200 Bass Lake Angola, Indiana 46703 HW HMWMD (CH) SE WQCD (CH) cc: Carl Mount; DMG (via a-mail)