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(Page 3) <br />MINE ID # OR PROSPECTING ID # M-1977-424 <br />INSPECTION DATE 8-29-2005 <br />INSPECTOR'S INITIALS SSS <br />To complete Surety Release No. 1, the permittee will need to clarify which areas they still wish to include in this release <br />request. Some areas that appear eligible for release may have wells or manhole accesses within them that still require proper <br />reclamation. These areas should either be retained in the permit, or partially released, retaining the well/manhole and access <br />corridor to that feature. A map illustrating the remaining affected areas of the mine (after approval of this release request) <br />should be included. <br />Abandonment reports for all wells associated with the permitted mine will need to be submitted to DMG in order to have those <br />wells released. DMG understands some of these records maybe lost and some wells may not be locatable. Documentation <br />will need to be submitted to DMG indicating that all available means to locate these wells or document theirabandonmenthave <br />been exhausted before staff will consider approval of their release. These means are to include review of all available records, <br />including those of the State Engineer's Office (Division of Water Resources) and the health Department. Also, effort should be <br />made to contact previous employees that may have direct knowledge of the history and location of these features. <br />To calculate an accurate reclamation cost estimate for the remaining reclamation liabilityat the Logan Wash mine, clarification <br />will be necessary for the evaporation pond area. DMG files do not contain documentation indicating this pond is part of the <br />permitted affected area. The evaporation pond and pipeline show up in the 1985 annual report list of affected acreage, but staff <br />is unable to find an amendment to add this into the permit area. It may be possible that this feature was not included in the <br />reclamation permit, but instead fell under Health Department that had jurisdiction over groundwater and process water at that <br />time. This feature may also have fallen under BLM jurisdiction since it is located on BLM land. Please submit any <br />documentation regarding permitting of the evaporation pond so DMG files properly address this issue. <br />Responses to this inspection report should be directed to Steve Shuey at the Division of Minerals and Geology, Grand Junction <br />Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-6368. <br />I & E Contact Address cc: <br />NAME Bruce Smith -Western Water & Land. Inc. <br />OPERATOR Occidental Oil Shale, Inc. <br />STREET 743 Horizon Court. Suite 365 <br />CITY/STATE/ZIP Grand Junction. Colorado 81506 <br />^ CE <br />~ BL Julia Christiansen - G.J. Office <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />