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III. COMMENTS -COMPLIANCE Below are comments on the inspection. The comments include discussion of observations made during the inspection. Comments also describe any enforcement actions taken during the inspection and the facts or evidence supporting the enforcement action. This was a complete inspection conducted by Tom Kaldenbach of the Division Minerals and Geology. No one else was present. The permittee has requested Phase III (final) release on the entire site. The file number is SL-5. The bond release inspection was held in September 2004. The permittee is waiting for ground conditions to improve so that riprap can be installed in permanent gully channels (worked approved in MR-53). The ground was wet and muddy, and snow covered in places, but the site was fully accessible by foot. No changes were found on the site compared to the previous inspection in December 2004. AVAILABILITY OF RECORDS All required records were available at the Archuleta County courthouse (see attached list). SIGNS AND MARKERS The mine i.d. sign was properly displayed at the entrance to the site. ROADS The only roads remaining on the site are the graveled entrance gate road and a dirt road on the west side of the East Pit ridge. Both roads have been approved as pennanent. The surfaces of both roads were in good condition. The ditch next to the East Pit road was in good shape. HYDROLOGIC BALANCE All ponds were reclaimed a few yeazs ago. All ditches remaining on the site have previously been approved as permanent. The embankment next to the double-culverts on the west side of the East pit azea is holding up well, having had rock installed in the embankment a few months ago. Hydrologic monitoring was eliminated in Technical Revision TR-32 in January 2003. RECLAMATION SUCCESS No additional erosion was evident on the hillslopes of the East Pit area, although snow cover limited inspection (see photo below). 3