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(Page 2) MINE ID # OR PROSPECTING ID #: M-1995-057 INSPECTION DATE: 10/08/04 INSPECTOR'S INITIALS GRM OBSERVATIONS This inspection was conducted as afollow-up to the inspection conducted on 7-28-04. Deb Rudibaugh accompanied the inspector on site for this inspection. The operator and inspector reviewed issues noted in that inspection and corrective measures taken. The mine identification sign and affected azea boundary markers are in place and incompliance with Rule 3.1.12. An incorrect sign and lack of markers has been corrected. The sign is posted at the entrance to the site and t-posts are being installed along the southern boundary. During the 7-28-04 inspection, a pile of tree trunks and another of debris were noted within the permit boundaries. The operator has supplied photo documentation that the piles have been removed and the inspector observed the clean area as well. The final issue is a small azea of disturbance along the west side. The area is adjacent to the county road right of way and has a knob that obstructs the view of a curve in the road. The operator has begun removing this knob, which includes areas outside the permit boundaries. Due to the small overall azea ofdisturbance, staffopted to have the operator amend the permit to include the azea rather than posting a possible violation and board action. In order to remain within the 9.9 acres the operator will remove an area not disturbed to the northeast and add in the affected area in the west. The operator has all the necessary paperwork completed, with the exception of the notarized affidavit in the application and sending notices to the necessary government agencies as required by Rule. The inspector instructed the operator to have the affidavit notarized and send out the proper notices with a brief description of the amendment purpose. Once that is accomplished the amendment application is to be sent to Denver for processing. The operator stated that this would be accomplished by the end of the following week. No other issues were noted at this time. The operator has been very cooperative in getting issues noted corrected. With the submission and approval of the amendment the permit appeazs to be back in compliance with the approved mine and reclamation plans. Responses to this inspection report should be directed to Russ Means at the Division of Minerals and Geology, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. I & E Contact Address cc: ^ CE NAME: Deb Rudibaugh ^ l3L OPERATOR: same p FS STREET: 711 Ranch ^ HW CITY/STATE/ZIP: Parlin. CO 81239 ^ HMWMD (CH) ^ WOCD (CH)