2004-02-03_INSPECTION - M1983052

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(Page 2) MINE ZD # OR PROSPECTING ID # M-1983-052 INSPECTION DATE O1-28-04INSPECTOR'S INITIALS GRS This was a partial release inspection of the Joker Mine conducted by Gregg Squire and Carl Mount of the Division of Minerals and Geology. Mike Frick of Dirt-N-Iron was also present. Rob Ernst of the BLM Little Snake Field Office was notified by telephone messages of the planned inspection but was not present. Weather conditions were cold and windy, and there was six to twelve inches of snow on the ground. The mining at the site has ceased and final reclamation was conducted by Dirt-N-Iron during the fall of 2003. Reclamation work observed included the regrading of a steep bank on the west side of the access road, the backfilling of a test pit, and the removal of the lower pond. The upper pond dam has been regraded and a dip constructed on the dam crest to serve as an overflow structure. All structures, with the exception of three small historical wooden buildings, have been removed. All but three of the wells on the site were plugged. It is the Divisions understanding that the BLM has requested that two of the wells be left and that the third one is a private well. Because of the snow cover it was difficult to be certain, but it appeared as if all the disturbed areas had been regraded, topsoiled, seeded and mulched with straw. Prior to final release of the entire permit the Division will need a demonstration from the permittee that the wells are properly permitted and acceptable to the BLM and the Office of the State Engineer(OSE). Also, the operator must provide the Division with an engineered demonstration that the dam overflow structure is properly designed and constructed to handle the expected flows into and out of the pond, and the site must meet the Division's revegetation success standards. At this time, based upon the observations made during this inspection, the Division proposes to release a portion of the reclamation bond. Costs which may still be incurred have been estimated as follows: Reseed disturbed areas in the event of a lack of vegetative cover, 10 acres ®$600.00/acre. $6,000.00 Rework and stabilize the dam outlet if necessary Plug any wells not acceptable to the BLM or OSE Mobilization/Demobilization Cost 8 hrs. W $150.00 hr. Subtotal 238 Additional Costs Total $20,000.00 $5,000.00 $1,200.00 $3z,zoo.oo $ 7,406 $39,606.00 The current reclamation bond is $236,000.00, the Division proposes to retain $39,600.00, resulting in the release of $196,400.00. Please note, based on the language in the operator's financial warranty document, which states, "Operator hereby agrees that this Financial Warranty shall not be released until the Board is advised in writing by the BLM that the Operator's obligations to the BLM, for which this warranty is executed, have been satisfied and until its release is approved by the Board.", that this release will not take place until the Division receives a written letter of concurrence from the managing land agency, The Bureau of Land Management.