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(Page 2) MINE ID # OR PROSPECTING ID # M-1992-054 INSPECTION DATE 2/25/04 INSPECTOR'S INITIALS RCO This inspection was pertormed by the Division as part of its monitoring of Construction Materials 110 permits. The site was inactive at the time of the inspection. The site was secured by a locked gate (stock sections) at the entrance near the county road. Nomining-related or reclamation activity has been carried out at the site in several years. The only changes noted since the last inspection (pertormed at the time of the amendment which added over 5 acres to the west end of the permit) consist of pit slope erosion, placement of additional debris and additional non-mining-related equipment in the pit, and the spread of the knapweed infestation. These items will be discussed below. There was no permit ID sign posted at the entrance or anywhere in the pit, though that is required by Rule 3.1.12. Likewise, there were no permit area boundary markers noted, though those are required also, under the same rule. The lack of the required sign and markers is noted as a problem in this report under the topic of "signs and markers." The corrective action is to post an ID sign (containing all required info described in the rule cited above), and adequately mark the boundary in a durable and visible manrier (such as t-posts at the corners). See the last page for the correction date. The site has been inactive for almost 5 years, but that is not yet a problem (refer to Rule 1.13, Temporary Cessation). The topic of "general mine plan compliance" is noted as a problem in this report since there has been continued placement of more and more debris and non-mininc-related equipment in the pit . This is not an approved part of the minino plan, and it adds to the reclamation liability of the operator. There is a choice of corrective actions to this problem: applyfor a technical revision to the permit's mining plan, or remove the debris and equipment from the pit floor, or prepare for submitting additional bond (in an amount to be determined by this office). See the last page for the correction date. The pit is bounded by irrigated agricultural land on N and W. Irrigation pipes lie on the ground on the north side of the pit, near the permit boundary line. What appears to have been an ongoing leak from a loose joint or misaligned lines has caused surtace gullying and subsurtace piping of the soils on the pit slope. The soil has been carried to the pitfloor. and has left a hole in the slope to fix. The damage caused by past erosion is noted as a problem under the topic of "soil erosion" This will continue to occur unless the operator corrects the problem by eliminating the pipe leak, shaping and compacting the slope, and providing for adequate upland drainage control. See the last page for the correction date. There appears to be a new roadway dozed down to the creek bed from the NE corner of the permit area. Since this is out of the permit area, and it is not part of the approved plan in the file, it is not clear if this road is related to the permitted mining activity, the landowner's agricultural activity, or related to gas well activity. Offsite damage related to mining activity may constitute a possible violation to the permit. At this time, however, until this problem is corrected, through this office receiving page for the correction date. There is agricultural land surrounding the permit area, and much of the undisturbed land in the permit area is still used for agriculture. Noxious weeds (knapweed patches) have been noted on the site in the past, and the former permittee was required to implement a weed control plan. It does not appear that the present noxious weed control plan has been effective submit a more effective plan and the commitment to implement it. The plan must be submitted soon, but the actual implementation of weed control practices must occur at the proper times during the season. (Note: This plan must be in place before the growing season begins. Implementation must begin in 2004; delay will allow further spread of the weed, which increases reclamation costs.) See the last page for the correction date. No further items were observed during the inspection. All questions or responses to this inspection report should be directed to the Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no. 970-247-5193. Cont.