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• (Page 21 • <br />MINE ID # OR PROSPECTING ID # M34-108 <br />INSPECTION DATE 1/19/96 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This partial inspection was conducted by Wally Erickson from the DMG field office in Durango. Mr. Rick Noland, Noland, Inc., <br />accompanied the DMG inspector through out the inspection. The mine site is located in a previously disturbed area, approximately <br />3 miles west of Mancos, on the north side of Hwy 160. The phased mine plan requires that affected area be limited to <br />approximately 10 acres at any given time. The permit area is approved for 60 acres. DMG holds financial warranty in the form of <br />a Letter of Credit from Valley National Bank of Cortez, in the amount of 524,704.00. <br />All Rules referenced within this inspection report are from the Construction Material Rules and Regulations of the Colorado Mined <br />Land Reclamation Board, effective 10195. If the operator does not possess a copy of the current Rules and Regulations, one may <br />be requested for 58.00. <br />Snow covered the ground, approximately 3" deep. Mining equipment was not observed within the permit area. Mining activity did <br />not appear to have commenced since permit issuance on 3/7195. Approximately 70% of the permit area had been previously <br />disturbed. Numerous stockpiles and unreclaimed excavations were located through out the western 2/3s of the permit area. Two <br />ponds remained from previous excavations which encountered impermeable shale strata. The ponds were located in the N W corner <br />and along the west side of the permit area, both ponds contained water. <br />Public access to the mine site is controlled by locked gate. Mine identification sign, required by Rule 3.1.12111, was not evident. <br />Rule 3.1.1211) requires that the operator post a sign at the mine entrance, which is clearly visible from the access road and displays <br />the name of the operator, the permit number, and a statement that a reclamation permit for the operation has been issued by the <br />Colorado Mined Land Reclamation Board. <br />Affected area perimeter markers were evident but the markers were inconsistent and did not clearly delineate the boundary. Rule <br />3.1.12121 states that the boundaries of the affected area will be marked by monuments or other markers that are clearly visible and <br />adequate to delineate such boundaries. Rute 3.1.1212116) defines the "affected area" for 112 permits as being the area proposed <br />to be disturbed by mining operations for which a financial warranty and performance warranty have been posted. <br />On 2/16195, DMG calculated the amount of financial warranty totalling 524,704.00. The current amount of financial warranty is <br />sufficient to perform reclamation. <br />I & E Contact Address <br />NAME Rick Noland <br />OPERATOR Noland. Inc. <br />STREET P.O. Box 302 <br />CITY/STATE/ZIP Mancos, CO 81328 <br />cc: Tom Gillis, DMG <br />^ CE <br />^ . BL <br />^ FS <br />^ HW <br />^ HMWMD ICHI <br />^ SE <br />^ WOCD (CHI <br />^ OTHER <br />