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azeas. Water monitoring site FBR-2 is located approximately 100 yards from a ranch fence two-track trail (located at the tree line in the distance). This 100 yard azea is well vegetated with rangeland grasses. HYDROLOGIC BALANCE Sites 008-77-58, AVM #I, 008 AV-l, 008-AV-2, 304, FBR-2E, and FBR-2 are incorporated into the current hydrologic monitoring plan. BACKFILL AND GRADING Areas that require backfill and grading are areas of long-term surface support facilities and underground portals, shafts, and drill holes. No such areas aze under reclamation at this time. The water monitoring wells (drill holes) will require backfill and sealing in accordance with the approved reclamation plan of the permit. With care, this work might be accomplished with little ground disturbance and subsequent grading. Site 008-77-58, located in the emergency spillway of a pond, would require no grading. SUPPORT FACILITIES Water monitoring sites 008-77-58, AVM #1, 008 AV-1, 008-AV-2, 304, FBR-2E, and FBR-2 are in support of the general mine plan. All areas were in good repair. GENERAL MINE PLAN COMPLIANCE The water monitoring operation are in compliance with the general mine plan. REVEGETATION Long-term mining disturbed areas require eventual revegetation in the reclamation plan. No seeding of reclaimed disturbed azeas has been reported to date. Ground disturbed during the reclamation of water monitoring sites AVM #1, 008 AV-1, 008-AV-2, 304, FBR- 2E, and FBR-2 will require revegetation. Water monitoring site 008-77-58 will not require revegetation as it is located in the riprap of a pond spillway. SLIDES AND DAMAGE During this inspection, a slump in the cut slope for the rail line, just north of the Belt-Out-Back storage pile, was noted. Work appeazed to have been accomplished to clear the slide material from the track-way. RECLAMATION SUCCESS There has been no reclamation bond releases processed at the Foidel Mine site. C-1982-056. CP Inspection of 7June 2006 Page 4 of 5 pages. BGW