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• (Page 21 • <br />MINE ID # OR PROSPECTING ID k M-78-17 6 <br />INSPECTION DATE 9/24/9 INSPECTOR'S INITIALS Vyj{6 <br />9BSERVATIONS <br />This inspection occurred as part of DMG's routine monitoring plan for permitted operations. Dave Diss <br />accompanied the DMG inspector throughout the inspection. The SM-18 Mine is approved for 14.9 acres <br />affected area. DMG holds 514,000 financial warranty. The permit status is intermittently active. Mine <br />entrance road was well maintained. Public access to the portal is controlled by locked portal doors. <br />Signs & Markers Mine identification sign was posted at the mine entrance. Affected area perimeter markers <br />were not inspected. However, mining related disturbances appeared to be confined to approved areas. <br />Facilities Affected area was approximately 2.15 acres and included the following facilities: <br />Portal -approximately 9' x 11' with wood cribbing to reinforce highwall. Highwall was approximately 30'H <br />x 60'L; <br />Vent hole -Permit documents anticipated approximately 6 vent holes. However, DMG records indicate only <br />1 vent hole, 7' diameter, being constructed at this time. Please clarify; <br />Topsoil stockpile -Scraper deposited topsoil stockpiles were located on two sides of the waste rock stockpile. <br />Protective vegetative cover was established on stockpiled topsoil. Evidence of erosion, weed infestation or <br />deterioration of topsoil was not observed; <br />Waste rock stockpile; <br />Shop building - 48'L x 30'W x 12'H, Butler type building with concrete foundation and floor; <br />Shed - 10'L x 8'W x 8'H; <br />Electric substation -owned by San Miguel Power, includes 3 transformers. Cotter Corporation is responsible <br />for buried powerlines extending from the substation to the shop and portal, approximately 20' of OH line and <br />transformer to the vent fan; <br />Pond -none discharging evaporation pond is approximately 80'L x 80'W x 5'D, lined with impermeable fabric, <br />fenced enclosure; and <br />Water tank - 6'diameter x 21'L, approximately 6,000 gallon capacity. <br />Financial Warranty DMG will utilize the above information, permit documents, and the reclamation cost <br />estimation provided by the operator during the inspection, dated 9/24/99, to evaluate the current cost of <br />reclamation. Results of DMG bond review will follow under separate mailing. <br />I & E Contact Address <br />NAME Dave Diss <br />OPERATOR Cotter Corporation <br />STREET P.O. Box 700 <br />CITYISTATEIZIP Nucla. CO 81424-0700 <br />cc: Tom Gillis, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD ICHI <br />^ SE <br />^ WOCD (CHI <br />x David Munger, Cotter Corp., Lakewood <br />