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• (Page 2) <br />MINE ID # OR PROSPECTING ID # <br />INSPECTION DATE 2/24/99 <br />OBSERVATIONS <br />• <br />INSPECTOR'S INITIALS WHE <br />This inspection occurred as part of DMG routine monitoring plan for permitted operations and to <br />evaluate the current cost of reclamation. Dave Diss accompanied the DMG inspector throughout <br />the inspection. The JD-6 Mine utilized the Duggan Adit, permitted under the Mineral Joe Mine, <br />Permit No. M-77-284, to access the underground workings. Permit is approved for 6.24 acres, <br />which includes waste rock stockpile, vent holes and access roads. DMG holds 52,500 financial <br />warranty. <br />Records The original permit was issued on 7/31 /97, to Cotter Corporation for 6.24 acres. On <br />7/17/80, operations went into temporary cessation status. On 8/22/85, DMG approved a 5-year <br />extension of TC status. On 6/25/90, DMG approved TR-01, revising the mine status to <br />intermittently active. DMG records do not indicate additional modifications to the permit. <br />Permit Area Mine entrance road was well maintained. Mine identification sign and markers were <br />observed. Public access to permit area is controlled by locked gate. Mine entrance road and gate <br />also service the adjacent Mineral Joe Mine. Affected areas appeared stable, well maintained, and <br />within approved areas. Stormwater containment berms appeared intact along the crest of the <br />waste rock stockpile. Silt fence were intact at various locations along the toe of the waste rock <br />stockpile. <br />Financial Warranty DMG is reviewing the current cost of reclamation for the JD-6 Mine. Results <br />of DMG review of the cost of reclamation will follow under separate mailing. Options may exist <br />for the operator regarding the financial warranty amount required by DMG, providing the operator <br />has an existing reclamation bond with the federal land management agency (Department of <br />Energy, please review Rule 4.2.118). <br />I & E Contact Address <br />NAME Dave Diss <br />OPERATOR Cotter Corporation <br />STREET P.O. Box 700 <br />CITY/STATE/ZIP Nucla. CO 81424-0700 <br />cc: Tom Gillis, DMG <br />^ COE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD ICH) <br />x David Munger, Cotter Corp., Lakewood <br />