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(Page 21 <br />MINE ID # OR PROSPECTING ID #: M-1984-014 <br />INSPECTION DATE: 10-23-06 <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining and Safety for permitted sites. Due to a clerical error it has been noted that the observation <br />portion of the October 23, 2006 inspection of the JD-8 has been lost. Therefore, staff is inserting this supplemental <br />Observation sheet to correct the error. Cotter representative Glen Williams accompanied the inspector on site. <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. <br />As noted in other inspections of this date, a major rain event hit the azea with what could be described as historic <br />amounts. The impacts to the JD-8 Mine were major, but confined to the permitted azea. Storm water ran down the <br />old access road to the waste dump area. There it breached a containment berm and spilled down to the area below. <br />The lower area had been cleared of topsoil for dump site preperations and created a natural retention pond that held <br />a large portion of the rain water. Alluvial fans indicate that water did move on from this area but at a greatly <br />reduced volume and velocity, No off site erosion was observed that indicated impacts outside of normal drainages <br />for the area. The deposition of the alluvium indicates that sedimentation was controlled to the most extent possible <br />even if by chance. <br />The Division will require a stronger look at the stormwater management for the site. However, until the issue of <br />Designated Mining Operation Status is resolved in April or May of 2007 any expenditures of time, money or <br />equipment is not prudent. DMO designation may require much more stringent design for the site. It is the <br />inspector's opinion that current evidence shows that normal precipitation is being handled to minimize off site <br />impacts. Cotter has done some repairs to berms etc. to augment the stormwater handling in the short term. <br />No issues aze noted at this time. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South 3`d Street, Room 301, Grand Junction, Colorado 81501, phone no. <br />970-241-1117. <br />I & E Contact Address <br />NAME: Glen Williams <br />OPERATOR: Cotter Corporation <br />STREET: P.O. Box 700 <br />CITY/STATE/ZIP: Nucla, CO 81424 <br />cc: <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ WQCD (CH) <br />^ OTHER <br />