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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1998-091 <br />INSPECTION DATE 09/14/06 <br />INSPECTOR'S INITIALS ESC <br />This was an inspection of the Arnold Gulch site conducted by Erica Crosby of the Colorado <br />Division of Reclamation, Mining and Safety. Joseph Cogan was present during the inspection. <br />Weather conditions on site were clear and warm. Ground conditions were dry. <br />The Arnold Gulch Site is located approximately 6 miles south east of Buena Vista in Chaffee <br />County, Colorado. The 110 permit was issued in 1999 for a permit area of 9.9 acres. The <br />Division currently holds a reclamation bond in the amount of $12,000.00. <br />No mining was taking place during the inspection. The site is divided into 8 cells and <br />mining is progressing from east to west. The mine plan involves mining each cell to a width <br />of 208 feet leaving a 25 foot buffer on each aide for shaping of the pit highwalla (for a <br />total width of 257 feet). In addition, The mine plan states that material will be removed to <br />the size of one square acre about 20 feet deep and reclamation shaping will be done <br />approximately one cell behind mining. <br />The area was traversed using a GPS unit. Data points were collected on the east side of the <br />affected area. Towards the west, the Division surveyed the location of the permit boundary <br />markers on the south side of the pit. No markers were located on the north aide of the pit, <br />so the northern permit boundary is an approximate location of the permit boundary. The data <br />collected by the Division reveals that the permit area is 7.4 acres in size (however, it <br />should be noted that the Division had to estimate the location of the northern boundary <br />markers). The actual affected area is approximately 3.5 acres in size. See attached map for <br />further detail. <br />The operator committed to installing poets at corners of each of the 8 one acre tracks in <br />order to keep operations in line and leave enough area to elope pit banks to 2h:ly. As noted <br />above, the southern markers were noted but not the northern boundary markers. The operator <br />will need to install the post as noted in the permit and in accordance with Rule 3.1.12 of <br />the Construction Materials Rules & Regulations. See page 3 for compliance due dates. <br />The operator should be aware that a portion of the east end of the pit is approximately 220 <br />feet wide. The 220 feet is within the permit area, but encroaches into the buffer area that <br />was to be used to grade the slopes into the final channel. The width of the pit will need to <br />be maintained at a maximum of 20B feet in order to achieve the sloping of the pit. The pit <br />is approximately 40 feet deep on the eastern limits of mining, twice the approved depth of 20 <br />feet. Because the pit is deeper than anticipated, some backfill at the toe of the slope will <br />be required to ensure that the pit stays within the approved boundaries. No reclamation has <br />been done in the excavated areas where mining is complete. The area will eventually be <br />reclaimed into a channel. Based on the disturbance noted above, the Division will reevaluate <br />the cost to reclaim the site. Notice of any bond increase will be sent under separate cover. <br />I & 8 Contact Address <br />NAME Joseph L. & Arlene Cogan <br />OPERATOR <br />STREET P.O. Box 113 <br />CITY/STATE/ZIP Nathrop, Colorado 81236 <br />Cc: Carl Mount; DRMS <br />^ CE <br />^ BL <br />^ FS <br />^ xw <br />^ HMWMD (CH) <br />^ SE <br />^ WQCD (CB) <br />