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ORIGINAL -PUBLIC FILE (Page 2) MINE ID # OR PROSPECTING ID #: nn-t eaR_nee INSPECTION DATE: y/~/Ox INSPECTOROS INITIALS: ~_ OBSERVATION The Division conducted apre-operational inspection of the site on 2/23/06. Present during the inspection was Mr. Mark Heffner the operator's consultant. The site is currently permitted to affect 1 1 10 acres, under this amendment the operator is proposing to increase the permit and affected acres by 1650 acres for a total permit acreage of 2760 acres. The entire area to be amended was driven and inspected area is being proposed to be mined in phases. At present, the operator has bonded 224 acres of the 1 1 10 acres permitted. Under this amendment the operator proposes to bond another 321 acres for a total of 545 acres. There are dry channels through out the permit area, which appear to be within the jurisdictional authority of the Army Corps. According to the operator, the Army Corps has suggested arbitrary set backs from these dry ephemeral channels. There is also a safety issue of 500 foot set back that is required by the operator for areas that could still hold some unexploded bombs. The permit area used to be a bombing range in the 40s and SOs. The area being amended and the current permit area surface are leased by a live stock farmer who was present at the time of the inspection. Briefly talked to him about the pending amendment. He said he was not aware that the mining area was being proposed to be expanded .It was determined by Division supervisory staff that the fact that he is the surface lease holder does not require notification, as is required to Notify all adjacent land owners. The Stet Land Board who was duly notified owns the land. There were a large number of cattle through out the permit and proposed amended area grazing at the time of the inspection. Permit amendment application sign was properly posted. The inspection only focused on the areas amended under this amendment application. Other than what was listed in the previous amendment there are no new man made structures with in the amended area. All man made structure owners with in 200 feet were notified during the previous amendments and will be notified as such during this process. I & E Contact Address NAME: Mr. MARK HEIFNER CC: OPERATOR: SO TH RN C'O O I A RVIC C STREET: 37 FAST C(~I C)RADn AVFNIIF CITY/STATE/ZIP: nFNVFR Cr~l ~RAnn srotn-A1o5 Harry Posey (e-mail)