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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1977-305 <br />INSPECTION DATE: 9-13-06 <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining and Safety for permitted sites. The C-LP-21 is a 112 permitted site in full reclamation. Cotter <br />Corporation had intended to reactivate the site but has not done so to date. The inspector was in the area on other <br />Division business and conducted the inspection as a matter of convenience. Therefore, no permit representative was <br />present. <br />The C-LP-21 as noted above has been fully reclaimed. The inspector notes that pocking the waste piles has done <br />very well for this site. Four-winged saitbush and rabbit brush have done the best to date as plants are up to 3 feet tall <br />and healthy. The inspector notes slender and western wheatgrass along with some Indian rice grass well established <br />in the pock holes and beginning to seed out to other areas. Overall the vegetation covers approximately 50 to 60% <br />and is diverse. <br />The area has experienced a heavy precipitation event in the last week. A local monitoring station noted over 1 '/a <br />inches of rain in an hour. It is important to note this event as a true test of erosion and sedimentation control. The <br />inspector noted that the diversion ditch that keeps run-on off the piles from the hills to the east is in tact and has held <br />up very well. No evidence of erosion was noted on site. Sedimentation was minimal and was caught in the flats <br />below the site as planned. <br />The area is free of trash and debris. <br />The reclamation cost estimate was not recalculated as part ofthis inspection. The current estimate was recalculated <br />less than a year ago and the operation is in compliance with the approved mine plan and reclamation plan. <br />Therefore, the current financial warranty is believed to be adequate to reclaim the site per the approved reclamation <br />plan. <br />No issues or problems are noted at this time. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South 3`d Street, Room 301, Grand Junction, Colorado 8150], phone no. <br />970-241-1117. <br />I & E Contact Address cc: <br />^ CE <br />NAME: Glen Williams ^ BL <br />OPERATOR: Cotter Corporation ^ FS <br />STREET: P.O. Box 700 ^ HW <br />CITY/STATE/ZIP: Nucla, Colorado 81424 ^ HMWMD (CH) <br />^ WQCD (CH) <br />^ OTHER <br />