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1 <br />(Page 5) <br />MINE ID # OR PROSPECTING ID # M-79-781 <br />INSPECTION DATE 7/20/99 INSPECTOR'S INITIALS WHE <br />3. DMG records indicate that mining operations may have remained inactive and therefore been in <br />Temporary Cessation status for 10 years. However, DMG records do not indicate receipt of the Notice of <br />Temporary Cessation from the operator, as required by Rule 1.13.5. Additionally, DMG records do not <br />indicate receipt of the request for extension to the initial 5 year period of Temporary Cessation, as required <br />by Rule 1.13.8. <br />CORRECTIVE ACTION: Within 30 days, by August 29, 1999, submit the required Notice of Temporary <br />Cessation and request for extension to the initial 5 year period of Temporary Cessation, in accordance with <br />Rule 1.13.5 and 1.13.8. Submit the Notice of Temporary Cessation and request for extension to the DMG <br />Durango Office, 484 Turner Drive, Building F, Suite 101, Durango, CO 81301. 8 / 29 / 99 <br />PV or PB ~ <br />TOPICS AR. MP. RS <br />4. Uncontrolled affected area surface drainage has resulted in significant erosion of affected lands and off- <br />site transport and deposition of sediment. Additionally, waste rock and ore, containing pyritic materials, and <br />debris generated subsequent to permit issuance do not appear to have been handled in a manner which <br />minimize disturbances to the hydrologic balance. DMG interprets the above issue as a possible violation of <br />Rules 3.1.611), (3), and 3.1.5(3), (5), (101 and (11), and will schedule the matter for formal public hearing <br />before the Colorado Mined Land Reclamation Board (Board) for consideration of possible violation. The formal <br />public hearing will be scheduled for the September 22-23, 1999 Board meeting, to occur at 1313 Sherman <br />Street, Room 318, Denver, Colorado. DMG's notice of Reason To Believe A Violation Exists will follow under <br />separate mailing. <br />CORRECTIVE ACTION: Within 30 days, by August 29, 1999, submit a Technical Revision to the permit, <br />containing plans for removal of all waste rock, debris and ore materials, handled or disturbed subsequent to <br />permit issuance, from and immediately adjacent to Sneffels Creek, and plans for site stabilization to control <br />erosion and sedimentation. 8 / 29 / 99 <br />PV or PB ~V <br />TOPICS MP. RS. HB. ES. BG. AT. OD <br />5. Unpermitted facilities were observed within affected lands. Unpermitted facilities included an intact <br />crusher with auger conveyors extending to an underground location behind a locked door, additional milling <br />equipment, and fuel storage tanks. Permit documents state that fuels will not be stored on-site. Additionally, <br />the permit is not approved for milling or tailings disposal. <br />CORRECTIVE ACTION: Complete one of the following two options by the date specified: <br />Option 1 -Within 30 days, by August 29, 1999, dismantle and remove all Unpermitted facilities; OR <br />8/29./99 <br />PV or PB ~ <br />TOPICS MP, RS. SF <br />Option 2 -Within 90 days, by October 28, 1999, submit a new application which includes provisions for on- <br />site milling, tailings disposal, fuel storage and any other activities the operator desires to conduct within <br />affected lands and addressed by the Act and Rules. 10 / 28 / 99 <br />PV or PB ~ <br />(end of report) TOPICS MP. RS. SF <br />CERTIFIED MAIL NO. Z 443 190 279 <br />Return Receipt Requested <br />