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(Page 2) MINE ID # OR PROSPECTING ID #: M- 1981-013 INSPECTION DATE: 8-3-04 INSPECTOR'S INITIALS GRM r This inspection was conducted as part of the normal monitoring program established by the Colorado Division of Minerals and Geology. The Nichols Pit is located 2 miles east of Mesa, Colorado on KE Road. John Nichols and his pit foremen accompanied the inspector on the inspection. The mine identification sign and affected azea boundary mazkers aze in place and incompliance with Rule 3.1.12. The only issue noted is that the Sign has the wrong permit number. The correct permit number is M-81-013, not M- 81-134. The operator should remove the 9 at the end, a new sign is not necessary. The site is active with stockpiled materials being loaded out on site. A screen and portable stacker were noted as well. Recent excavations have produced highwalls in the north half of Area (year) 1,2 and 3. Highwall height is estimated at 10 to 15 -feet. -The southern half of these areas has not been disturbed. The operator has mined somewhat out of sequence to the approved plan. However, the disturbance has not extended beyond the phases proposed by the yearly plan. The issue was discussed as current conditions have created a bottleneck for producfion. The approved plans call for phases to be oriented along a north south axis. Per the approved plans, the operator may extend the disturbance for Year 1, 2, and 3 Areas all the way to buffer zone edges. Topsoil and overburden can be stockpiled along the minor disturbance areas for future reclamation use. The inspector suggest that the operator either extend the excavation towazds the south of the noted areas as approved or do a Technical Revision to the Mine Phasing and run highwalls west to east. Some reclamafion has occurred along the west edge of the pit access road. Grasses and shrubs were noted doing well in this area. The inspector did not do a field inventory on species as a release request has not been made. Some temporary sloping was noted along the northeast edge where the access road turns into the pit area. Slopes in some areas appear to be close to 2:1 while others are more along the lines if 1.5 to 1. Grasses noted were primarily cheat grass with some wheat, and annual weeds with a few volunteer shrubs. 'The operator is unsure at this time whether the area will be fiuther disturbed, so no approved seed mix has been applied. If the operator decides against further mining in this area, slopes should be verified as 2:1 or better before final seeding. The temporary efforts aze to be commended however. No noxious weeds were noted within the disturbed areas. Excavation has extended to a point where topsoil and overburden aze very close to the highwalls. The operator should always take extreme care to protect topsoil from being mixed with overburden or lost to mined materials. The inspector discussed with the operator moving the overburden and topsoil stockpiles back to the pit boundaries. The stockpiles should be handled as little as possible and protected from erosion. The Division recommends seeding these stockpiles with the approved seed mix. This creates a seed bank to help augment future reclamation efforts and it provides the operator a test plot to see what species are being more successful than others along with erosion protection. No stomiwater, erosion or sedimentation issues were noted at this time. The pit is clean of debris and trash. Hazardous materials are being stored properly in secondary containment features. Overall, the operator is doing well to follow the approved plans. The bond was recalculated in February of 1999. Staff will update the tasks within the next 60 days. No current conditions require additional tasks or changes. Therefore, it will be just an inflationary check.