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(Page 21 MINE ID # OR PROSPECTING ID # M-1987-038 INSPECTION DATE 4/16/03 INSPECTOR'S INITIALS RCO This inspection was performed by the Division in response to the operator's request for an inspection of this Construction Materials 112c permit. A time was arranged for the inspection, and the operator's representatives named on page one were present throughout the inspection. Technical revision TR-01 was approved by the Division on 3/31/03, which addressed the issues of regrading of pond inslopes and growth medium to be used on the slopes. The operator has spent several months during the winter dewatering the ponds and grading the floors and slopes, in preparation for final reclamation of the site. The pond water levels were still low for both ponds, and much of the floors of the ponds were still visible. Though the floors exhibited signs of recent material removal, the floors were slightly rough, which is probably an asset for fish habitat development. Material removed from the floors was used to buttress the pond inslopes and reduce their gradient. Pond slopes graded during this activity included the entire perimeter of the south pond and the S and SE part of the north pond slopes. Gradients observed were all 3:1 or gentler. The material from the pond bottoms appeared to be silty to clayey, with a large amount of cobbles. Grading has produced uniform slopes, but with a fairly rough surface. The finer material is expected to weather to a mellower and smoother surface during this season. There is still unmined material available along the southern portion of the west bank of the south pond. Sloping has been carried out there, and it is unclear whether additional material will be excavated. If it is, pond slope grading revegetation should be carried out there as well. The revegetation will be carried out this spring. Areas to revegetate will be limited to the slopes above the expected high water line. Seeding may be carried out by heavy-duty drill if the material is not too cobbly, or by tractor-mounted broadcaster and dragged. These actions will also smooth the rough surface. (The seed mix was reviewed by telephone conversation with Mr. Barnett after the inspection, and it was agreed that it was probably adequate and did not merit revision. Other species may be added to the basic required mix if desired, such as legumes, wildflowers or other grasses.) The wash fines and drainage ditches on the north pond floor and had not been removed during this reclamation activity. The shaly floor material excavated during drainage ditch excavation might not support good revegetation. A small portion of the shale or fines on the NW corner may extend above the water level after the pond is filled, unless they are graded down or pulled back into the drainage ditch. A few areas of past slope failure due to seepage were still present along the north edge of the north pond. They will be buttressed with coarse pitrun (presently piled at the location of each slump feature) to keep them in place. If future seepage at those areas of the bank still allows instability and slope failure, drain installation or placement of additional fill may be required. The dike between the ponds has been widened as part of the slope reduction. All spilled hydrocarbons and equipment have been removed adequately. There is a buried culvert and headgate installed there now, connecting the two ponds. There will be a gravel road after reclamation on the top of the dike. The north pond slope surfaces adjacent to the gas well have been present for several years. They exhibit the coarse nature of the unmined bank material. Vegetation is thin, consisting of few grasses, scattered rabbitbrush, plus annual weeds. A small area of knapweed (noted during previous inspections) was still present. The operator is aware of the patch and has sprayed there in the past. A couple plants are resprouting. The operator may burn the dead tops, and will continue to monitor and treat the area as needed. This is not a problem at this time. It is the Division's opinion that the bank grading appears to meet the maximum slope gradient specification in the approved reclamation plan. Attention should be given to weedy areas and unstable slopes. Aside from such future monitoring, the ponds may be allowed to fill, and reclamation carried out. The bond amount is 544,437, and was calculated in 1994. This office will recalculatedrthe required bond and inform the operator if a decrease is indicated. There were no additional items observed or discussed. No problems exist at this time. All responses or questions about