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(Page 2) MINE ID # OR PROSPECTING ID # M-1991-146 INSPECTION DATE 4/9/04 INSPECTOR'S INITIALS WHE OBSERVATIONS This inspection occurred as follow-up to the March 2004 Mined Land Reclamation Board discussion of citizens' comments regarding DMG field inspections. Three photos, taken during the inspection accompany this report. Background The original complaint, submitted by Mr. James Patterson on June 10, 2003, stated that "heavy machinery came onto our land last fall to make a build to fail levy...erosion has taken about 100 feet of our property." The Patterson property is south and upstream of the ZMK permit area. DMG investigated this complaint on June 13, 2003. Mr. Steve Ingram, resident at the Patterson property and presumed partial owner, accompanied DMG. In the report generated from the June 13 inspection, the DMG inspector recorded evidence of channel instability but found no problems or possible violations against the permit holder because the available evidence did not prove that the erosion had resulted from mining and reclamation activities conducted by ZMK. In subsequent correspondence, dated November 11, 2003 and received on November 13, 2003, Mr. Patterson remarked that the inspection report provided no evidence that the General Inspection Topics on page one of the inspection report were in fact compliant. DMG staff was of the opinion, and represented as much to Mr. Patterson, that his compliant could be argued before the Board. However, the Colorado Attorney General's Office explained to the Board that citizens and other entities who disagree with the conclusions or observations of DMG staff cannot seek relief through the Board, but would be obliged to seek relief through the civil courts. The Board directed DMG staff to re-examine the property to assure that ali field issues were personally addressed with the complainant. Inspection & Observations of Comalaint Issues The first part of the inspection examined properties south of the ZMK property. Mr. Jim Patterson (the complainant and landowner) and Mr. Scott Williams (an attorney affiliated with the Ridgway-Ouray Citizens Coalition or ROCC) accompanied the DMG inspectors. DMG understands that the Patterson property is held jointly by Mr. Patterson, Mr. Steve Ingram, and perhaps others, or was thus held at the time of the original complaint. The second part of the inspection focused on the ZMK property south of the ZMK permit area, and on the ZMK permit area. The ZMK permit area commences approximately 400 feet downstream (north) of the south boundary of the ZMK property. Permit holders, Mr. Richard Zannet and Mr. Pete Kline, and their consultant, Mr. Robert Larson of Monadnock Mineral Services, accompanied DMG. .The Patterson land at issue comprises aloes-water shelf of the flood plain, bordered on the east by the low-flow channel of the Uncompahgre River, and on the west by a berm approximately 40 to 60 feet from the riverbank. The area reportedly disturbed was approximately two dozer blades wide (east to west) by perhaps 4 dozer lengths long (north to south). (NOTE: DMG Inspectors made no direct measurements for this investigation as they saw no need for such. Dimensions and directions cited in this report are general and approximate, unless otherwise specified. These are based on summary field estimates, and the use of such estimates is consistent with DMG practices for investigations of this sort. All estimates and directions should be construed as only generally representative, but not precise or measured.)