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<br /> <br />(Page 21 <br />MINE ID # OR PROSPECTING ID # <br />INSPECTION DATE 2/24/99 <br />M-77-284 <br />OBSERVATIONS <br /> <br />INSPE(:TOR'S INITIALS WHE <br />This inspection occurred as part of DMG routine monitoring plan for permitted operations and to <br />evaluate the current cost of reclamation. Dave Diss accompanied the DMG inspector throughout <br />the inspection. The Mineral Joe Mine is located approximately 12 miles west of Naturita, in <br />portions of the NE 1/4 of Section 21 and E '/: of Section 22, T46N, R17W, ~1MPM, Montrose <br />County. Permit is approved for 9.5 acres affected area. DMG holds 512,000 financial warranty. <br />Records The original permit was issued on 6/16/78, to Kelmine Corp., for 9.5 acres affected <br />area. On 3/15/84, operations went into temporary cessation. On 10/19/93, DMG approved SO-01 <br />for Cotter Corp as successor operator. On 1 /29/94, DMG approved TR-01, revising the mine <br />status to intermittently active. DMG records do not indicate additional modifications to the permit. <br />Permit Area Mine entrance road was well maintained. Mine identification sign and markers were <br />observed. Public access to permit area is controlled by locked gate. Mine entran~:e road and gate <br />also service the adjacent JD-6 Mine. Permit documents indicate that the 9.5 acn:s are divided as <br />follows: Area A is 2.5 acres, containing 1 incline opening for ventilation; Area B is 3 acres, <br />containing the Dugggan Adit, waste rock stockpile and loadout area (JD-6 Mine: also utilizes the <br />Duggan Adit to access underground workings; Area C is 1 acre, contains a trlliler; Area D is 1 <br />acre, containing 1 venthole w/fan; and Area E is 2 acres of interconnecting roads. Affected areas <br />appeared stable, well maintained, and within approved areas. <br />Reclamation Plan The approved reclamation plan indicates that affected lands will be reclaimed <br />for rangeland post mining land use. Mine access roads were pre-permit arni will remain as <br />permanent roads. All surface facilities are to be removed, portal and vents closed, waste rock <br />stockpile graded to 2H:1 V, and affected areas graded to blend with native terrain. Available <br />topsoil and/or fines from the waste rock material replaced and revegetated. <br />Financial Warranty DMG has reviewed the current cost of reclamation and has determined that <br />the existing 512,000 financial warranty is insufficient to ensure reclamation. DMG current <br />reclamation cost estimation totals 531,426. DMG reclamation cost estimation is based upon <br />conditions of the approved reclamation plan and observations made during the inspection. Please <br />find enclosed, 25 pages of summaries, worksheets and data sheets, utilized by UMG to estimate <br />the current cost of reclamation. Pursuant to Rule 4.2.112-, the operator has 60 days to post <br />additional financial warranty, to total not less than 531,426, from the date of this notice of <br />insufficient financial warranty. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Dave Diss <br />Cotter Corporation <br />P.O. Box 700 <br />Nucla. CO 81424-0700 <br />cc: Tom Gillis, DMG <br />^ COE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD ICHI <br />^ SE <br />^ WOCD ICHI <br />X David Munger, Cotter Corp., Lakewood <br />