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June 18, 1998 <br />Basin Resources, Inc. <br />14300 Hwy. 12 <br />Weston, CO 81091 <br />Golden Eagle Mine; Permit No. C-81-013 <br />Partial, bond release inspection <br />June 17. 1998 <br />Inspection participants: <br />Ron Thompson, Basin Resources, Inc. (BRI) <br />Kent Gorham, Colorado Division of Minerals and Geology (DMG) <br />Henry Austin, Office of Surface Mining (OSM) <br />I participated in a partial, bond release inspection at the Golden Eagle Mine on June 17, 1998, <br />with the above participants. Weather conditions were warm and cleaz with high winds and <br />ground conditions were very dry throughout the areas inspected. <br />Mr. Gorham initiated the inspection as a result of the May 8, 1998, bond release application <br />received from BRI. The application requests Phase III liability release from approximately 700 <br />acres of land which overlays areas of underground mining south of State Highway l2 as shown <br />on Map BR-3 in the application. The application also requests Phase III bond and liability release <br />from well sites and roadways which have been converted to an industrial post-mining land use <br />via Colorado Technical Revision No. 45. Approximately 149 acres have been approved for <br />industrial use (methane gas collection) well sites and approximately 26.06 acres of the industrial <br />use sites represent mine related disturbance. The mine related disturbance sites include former <br />coal exploration boreholes, ground water observation wells, mine ventilation facilities, and <br />roadways (as shown on Table BR-I of the bond release application) These sites are now <br />approved and bonded through the Colorado Oil and Gas Conservation Commission (OGCC). <br />DMG Technical Revision No. 45 included stipulation no.76 which requires additional <br />information for three of the sites. BRI has satisfied this stipulation for two of the sites and is <br />currently collecting information for the third site. <br />Prior to the inspection I reviewed the following materials at the OSM Denver office;: <br />BRI May 8, 1998, Bond Release Application; BRI March 5, 1998, letter to OSM providing <br />information update as required by Technical Revision No. 45/Stip. 76; Tech. Rev. 1Vo. 46, <br />Subsidence Monitoring Reduction approved Oct. 28, 1997; Tech. Rev. No. 45, Post-Mining Land <br />Use Change approved Oc[. 16, 1997; Tech. Rev. No. 44, Revise Hydrologic Monitoring; <br />Tech. Rev. No. 47, Bonding Reduction approved Dec. I, 1997; and a Sept. 29, 199'7, letter from <br />the Bureau of Land Management to OSM regarding Federal Coal Lease relinquishments. <br />