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(Page 3) MINE ID # OR PROSPECTING ID #: ~~-teR~-i>S INSPECTION DATE: v/2G/n~ INSPECTOR'S INITIALS: KAP The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. PROBLEMS/POSSIBLE VIOLATIONS AND CORRECTIVE ACTIONS CORRECTION DATE 1• 12/ 30/07 During the file review conducted as part of the inspection, it was discovered that the operator is not in compliance with the Office of the State Enaineer for the presence of exposed groundwater in the ponds. This is a problem related to 34-32.5-1 16(4) (h) of the Colorado Revised Statutes and Rule 3.1.6(1) of the Construction Materials Rules and Regulations for failure to comply with applicable Colorado water laws and regulations governing injury to existing water rights. PB or PV: ~'g TOPIC(S): ~1B_ Cnrrectiva Actions Fithar fill the ~ to nt lead two feet nbrnit the~rp_undwntar surfnca nr demonstrate that the operation is in compliance with the Office of the State Enaineer within sixty (601 days of receipt of this inspection report. 2• 11/ 30/07 During this inspection, it was discovered that there are fuel tanks at the site that do not have an impermeable liner installed under them. Additionally there are numerous 55- gallon drums onsite that contain liquid of an unknown nature, which may be hazardous. This a problem related to Rule 3.1.6 and 3.1.7 of the Construction Materials Rules and Regulations for failure to minimize impacts to the prevailing hydrologic balance. PB orPV: _2B_ TOPIC(S): J~li CarrPCtiva-Actian• Inctnll nn impermeahle harm halnw the fuel ctnrnge, tankc and either AT have the contents of the 55-gallon drums certified as non-hazardous or have the dntms and their contents removed from the site and suoaly the Division with documentation of fhe above activities within thirty (30) days of receipt of this inspection report.