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III. COMMENTS - COMPLIANCE <br />Below are comments on the inspection. The comments include discussion of observations <br />made during the inspection. Comments also describe any enforcement actions taken during <br />the inspection and the facts or evidence supporting the enforcement action. <br />This was a partial inspection conducted by Kent Gorham of the Colorado Division of <br />Minerals and Geology. Ron Thompson of Peak Project Management represented Basin <br />Resources Inc during the inspection. Ground conditions were dry and the weather <br />was cool and breezy. This former underground mine site is reclaimed. <br />Signs and Markers <br />Mr. Thompson indicated he would remove the underground mining signs in Wet Canyon <br />in the coming month. <br />Revegetation <br />The growing season is fully underway at this site. Recent moisture has helped the <br />vegetation significantly. Smooth brome grass and western wheatgrass are beginning <br />to set seed heads. Vetch plants are setting flowers. Growth of grasses and <br />annual weeds was noted on the reclaimed portal area mentioned in last months <br />report. This area will continue to be observed over the coming months for any <br />sign of die-out or necrotic effects of possible methane contamination of the soil. <br />Biennial weeds, mostly thistle and houndstongue, were beginning to set flowering <br />stalks. These plants were mechanically removed as encountered. These and other <br />weeds on the site should be controlled as necessary using herbicide or mechanical <br />methods prior to setting seeds this season. Revegetation efforts seem to be <br />progressing very well. No evidence of trespass grazing was observed. <br />Revegetation at the lower ventilation shaft in Apache Canyon appeared in excellent <br />condition. Interseeding of the cut slope at the upper shaft area has met with <br />limited success. Some vetch plants have taken hold on this steep slope. <br />Soil Methane Monitoring <br />The area of methane contamination in the soil east of the mine permit area was <br />observed. Smooth brome and annual weeds (pigweed?) were noted on the two <br />reclaimed gas well pads. Patchy bare areas exist on both of these reclaimed areas <br />and in the adjacent area. Photographs were taken from the immediate area. The <br />Division continues regular monitoring of this area for changes. <br />3 <br />