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4 June 1S, 2004 West Slope Carbon Hawk's Nest (Bond forfeiture site-Permit revocation / C-81-016) Colorado Division of Minerals and Geology (DMG) 1313 Sherman St., Room 21S Denver, CO 80203 EY 04-OS Special focus inspection June 7, 2004 Participants: Jim Burnell, DMG Henry Austin, Office of Surface Mining (OSM) I participated in an Evaluation Year (EY) 04 to EY 2005 (2 yr, study) special focus evaluation to evaluate the off site impacts of bond forfeiture sites in Colorado under DMG's jurisdiction. This same Bond Forfeiture special focus evaluation was also initially conducted in EY 2000. A $625,000 bond was forfeited at the site January 6, 1989 from West Slope Carbon (former permittee). DMG also spent approximately $30,000 in 2000 using Colorado Severance Tax funds from 1998 for additional topsoiling / revegetation enhancement of this site. DMG personnel have also arranged wood slash & soil resource applications of materials on site here from local construction /utilities contractors at no expense to DMG since our EY 2000 evaluation here. Weather conditions were and have been hot and dry throughout the Somerset, Paonia, CO areas, ground conditions in all areas inspected were very dry, and vegetation stress was evident in some areas, particularly the south facing slopes in all areas. We began at the East Mine reclaimed area; the area is stable with no serious erosion evident and only minor erosion evident. This parcel is directly adjacent to and forms shoreline for the North Fork of the Gunnison River. The surface water runoff diversion berm is intact and functional and becoming well vegetated with grasses, willows, etc. The additional reclamation enhancements noted above have produced good vegetation establishment. Wildlife usage of the area was evident (deer, elk, geese, shoreline birds, etc.). The shoreline area is stabilized with willows mostly. No off site impacts were noted on this parcel. There is a small slump noted uphill and adjacent to the county road, and there are some small seeps adjacent to and on the slump area. There had been no significant movement of the slump the past 5 years according to Mr. Burnell. We next inspected the Middle Mine reclaimed area where conditions are very similar to the East Mine reclamation with the area being stable and vegetation becoming established. The county has maintained the ditches along the county road, and they are stable.