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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 Kent Gorham of CDMG. Ron Thompson represented Basin Resources during the inspection. This former underground mine site is reclaimed. Weather during the inspection was cloudy, cold, windy and ground conditions were partially snow covered. Availab~l~ty of Records The public copy of the mine records is kept at the Tri-State Ra~lyard office located on the western edge of Trinidad along Highway 12. All required records were found in compliance. The insurance certificate indicated coverage from Great Northern Insurance Company in the amount of 82 million in effect till March 1, 2001. Details of the records inspection are noted on the attached record chec4:l~st. Revegetat~on Vegetation is still dormant for the most part due to continuing winter conditions. Snow cover was sparse. Litter from previous growth is improving with each growing season. The reclaimed area was traversed on foot. Nothing unusual was noted. ThE~ concrete a stern located south of the former Jeffery intake fan shaft remains to bE~ covered of removed. Mr. Thompson indicated he would also remove the underground mining signs from the Wet Canyon road. Overall, the reclaimed areas appear in excellent condition. Soil Methane Mom toying Area The two reclaimed gas pad areas located in the pasture owned by John Toupal were inspected. Bare areas where snow does not seem to accumulate were noted on both the eastern and the western reclaimed gas pad areas. These areas appear susp-cious and may possibly indicate areas where the soils are warmed by leaking gas from some significant depth. The areas were photographed from the immediate area and from the railroad tracks to the south. 3