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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1985-172 <br />INSPECTION DATE 10/27/03 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of DMG's review of the permit holder's request for termination of permit <br />and release of warranty (SL-01). <br />Mine identification sign was posted at the entrance to the permit area. <br />On August 27, 2002, DMG approved Amendment 1 for the adjacent Hay Camp Pit, Permit No. M-1990- <br />025. Amendment 1 incorporated all affected lands for the Gardner Pit into the Hay Camp Pit permit. On <br />December 11, 2002, DMG approved the $168,615 financial warranty for the Hay Camp Pit and issued <br />the amendment. Therefore, it is appropriate to terminate the Gardner Pit because reclamation is <br />guaranteed under the reclamation plan and warranties for the expanded Hay Camp Pit. <br />On November 25, 2003, DMG approved SL-01 and terminated the Hay Camp Pit permit. <br />Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 <br />Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247-5469. <br />I & E Contact Address <br />NAME Llovd Everett <br />OPERATOR Montezuma Countv Road Deot. <br />STREET 1680 Hwy 145 <br />CITY/STATE2IP Cortez, CO 81321 <br />cc: Harry Posey, DMG <br />^ CE <br />^ BL <br />p FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />