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III. COMMENTS -COMPLIANCE Below are comments on the inspection. The comments include discussion of observations made during the inspection. Comments also describe any enforcement actions taken during the inspection and the facts or evidence supporting the enforcement action. This was a complete inspection conducted by Kent Gorham of the Colorado Division of Minerals and Geology (Division). Ground conditions were very dry and the weather was breezy and mild. Availability of Records The public copy of the mine records was checked on November 30 at the office of Peak Project Management (PPM). The contact, address, and phone number for PPM is Ron Thompson, Peak Project Management, 34115 County Road 20.8, Trinidad, CO 81082, 719- 846-4975. A current copy of the liability insurance certificate was found on file, with an expiration date of July 1, 2006. All records were found in compliance as detailed on page 2a of this report. Signs and Markers The mine identification sign has been re-attached to the post north of the former railroad crossing. Hvdrolooic Balance The Ciruela Canyon alluvial well is broken off at ground level. The operator may want to consider submitting a Technical Revision application requesting termination of the hydrologic monitoring program is anticipation of requesting final bond release for the majority of the reclaimed area later this year. Abandonment of ground water wells is required prior to release of bond monies associated with their reclamation. Revegetation Vegetation remains dormant due to cool temperatures and lack of meaningful precipitation. Soil Methane Area Evaluation of this area will be necessary in conjunction with any request for final bond release. At this time, no significant growth has occurred, if it is going to occur, due to the same reasons as above. Overall, the site appeared normal for the early spring season and no problems were noted.