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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 partial inspection conducted by Tom Kaldenbach of the Colorado Division of Minerals and Geology. Tom Bird represented the operator. The ground was dry. With the operator's consent, this report was issued from the Denver office. Availability of Records The subsidence reports for the 2"d 3rd and 4a' quarters of 2004 that could not be found during the last inspection were available. Hydroloeic Balance The water levels in both ponds were a few feet below discharge level. The east pond principal spillway culvert was clear (it extends from the east pond, underneath the road, and out into the pasture in Hay Gulch). Embankments and inslopes of both ponds were in good shape. The primary and secondary spillways appeared in good condition on both ponds. The sediment level in the west pond was approximately 3.5 ft. below the orifice in the 10-year drop inlet. The operator's representative explained that a contractor is being sought for cleaning of this pond when the sediment dries out. The diversion ditches on either side of the surface facilities azea were in good condition. Processin¢ Waste The waste pile showed no evidence of structural instability. Water was not ponding on top of the pile and was not flowing over the face of the pile. The ditch on the southeast side of the pile (see photo, below) needs reshaping to ensure positive drainage. The operator's representative explained this is the first item on their maintenance schedule.