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(Page 2) MINE ID # OR PROSPECTING ID #: M-1999-058 INSPECTION DATE: 4/1/04 INSPECTOR'S INITIALS GRM This inspection was conducted as part of the normal monitoring program established by the Colorado Division of Minerals and Geology. The operator's representative, Rex Loesby had contacted the Division in reference to a joint meeting between Sierra Minerals and Polycor Officials concerning a business arrangement. Sierra Minerals wanted the Division to be present to help answer any questions concerning the current state reclamation permit held by the operator. DMG Environmental Specialist Russ Means and Senior Specialist Carl Mount met Mr. Loesby, and Polycor representatives at the site entrance. Discussions ranged over a variety of subjects concerning the reclamation permit. Mr. Loesby had survey maps approved through court actions that clearly defined the boundaries of the approved permit. Mr. Loesby pointed out various markers and features that helped all present understand the extent of the permit boundaries under Siena Minerals control. The azea under the old Colorado Yule permit that was excluded from the Sierra permit was pointed out and the legal history concerning this specific area was discussed. The DMG holds a $10,000.00 bond on the older, revoked Yule Marble permit. The Division's Inactive Mines Program has jurisdiction over the reclamation of this azea and, at present, has not drawn up final closure plans. Sierra has some working test plots exploring revegetation options for the site using approved seed mixes. The test plots are currently under snow and therefore were not observed. Mr. Loesby stated that Sierra has had positive results adding amendments to the waste materials to help augment growth. If the test plots can show.documented positive growth, the Division may be able to adjust the required Financial Warranty to use the addition of the amendments as opposed to the importation of topsoils from the lower valley, greatly reducing the costs for this reclamation task. Within the quarry, the inspector observed various collection systems for mine waters. Various sumps pump water to a central settling pond. Fines are allowed to settle out prior to the waters being released out ofthe quany. The pond was covered by heavy plastic so observation of the area was not entirely possible. The operator has a discharge permit with the State and Mr. Loesby indicated that all testing had showed constituents of concern to be within the discharge limits. Slopes and outside erosion could not be inspected because of continued snow cover. The inspector will need to make a more thorough investigation of these areas at a later date. The only issue of concern in regards to the approved permit is the storage of hazardous materials and waste. No hazazdous materials were observed outside the quarry. However, fuel, motor oils and other agents that appeared to be classified as hazardous were not within secondary containment features as required. Although the release of such materials into the general environment is very unlikely, spills within the quarry have the potential to create significant amounts of hazardous waste without proper containment. At this time, the inspector has elected to address this as a "noted concem", rather than as a problem or possible violation. The Division is requesting photo- documentation within 60 davs that all hazadous materials stored within the quarry have adequate secondary containment as required by state and federal standazds. Fuel storage containers should be placed in lined, bermed azeas that are of sufficient size to hold the volumes being stored. 55 gallon barrels of oils can be placed within bermed azeas as well, or in more portable containment features if the operator desires. Failure to comely with the Division's request by June 1~`, 2004 may result in the issue being turned into a problem or uossible violation with conespondin consequences.