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-, <br />' (Page 21 <br />MINE ID # OR PROSPECTING ID # - -1 1 <br />INSPECTION DATE 9/2/99 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred in response to operator request for an on-site meeting. The Ruby Trust <br />Mine is a 110(2) type permit, approved for 2 acres affected area. DMG holds 59,481 financial <br />warranty. The permit area is located approximately 8 miles SW of Ouray, at the outlet of Governor <br />Basin, in portions of the SW 1/4 of the SW 1/4 of Section 16, T43N, R8W, NMPM, Ouray County. <br />Records indicate that the permit area includes pre-law mining disturbances dating from the late <br />1800's. Steve Fearn and Harry Castle accompanied the DMG inspectors throughout the <br />inspection. <br />Signs & Markers Mine identification sign and affected area perimeter markers were posted. <br />Therefore, the operator has complied with DMG corrective action for Problem #1 IPB-1) from DMG <br />7/20/99 inspection report. <br />Affected Area Problem #2, Possible Violation (PV-21 of DMG 7/20199 inspection report was <br />issued for 4 acres affected area, approximately 2 acres affected beyond the approved 2 acre <br />boundary. DMG's 4 acre measurement was taken from a map submitted by the operator. During <br />this inspection, Mr. Fearn presented a draft map of surveyed affected areas which indicated <br />approximately 2.1 acres affected area. Apparently, the previous map utilized by DMG had not <br />been drawn to the scale indicated on the map, resulting in errors in area determination. <br />DMG affected area measurements included aii portions of the mine entrance road. During this <br />inspection, Mr. Castle, clarified that portions of the entrance road pre-dated the permit as a historic <br />county road providing access into Governor Basin. Pursuant to Rule 1.1141, such pre-permit roads <br />are not defined as "affected land". However, permit documents do not identify the per-permit road. <br />Additionally, permit documents do not appear to clearly delineate the permit boundary. Pursuant <br />to Rule 6.3.3(11181, 6.3.5(11, 6.3.5(2-1a-, 12)(c1, and 12)If-, DMG requires that the operator update <br />the permit, through the Technical Revision process, to identify and delineate all pre-permit <br />disturbances and permit boundaries. <br />Based upon the surveyed map prepared by Mr. Fearn, map to be submitted to DMG upon <br />completion, and upon the new information presented by Mr. Castle, DMG has withdrawn the <br />possible violation for 4 acres affected area. DMG has withdrawn the possible violation issue from <br />the Board's October 20-21, 1999 agenda. <br />Temporary Cessation Problem #3 IPB-3) of DMG 7/20/99 inspection report was issued for absent <br />Notice of Temporary Cessation (TC) and absent request for extension to TC. DMG review of the <br />annual reports, submitted by the operator, did not indicate continuation of active mining <br />operations. However, during this inspection Mr. Castle clarified that mine development activities <br />have occurred which may not have been listed in past annual reports. Additionally, Mr. Castle <br />indicated that stockpiled material will be relocated in the immediate future. Therefore, DMG has <br />determined that the mine status is active and has withdrawn PB-3. <br />DMG encourages the operator to consider submitting the Substitute Notice for TC, as described <br />under Rule 1.13.7, through the Technical Revision process. <br />