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(Page 2) MINE ID # OR PROSPECTING ID # M-1992-058 INSPECTION DATE 8/28/06 INSPECTOR'S INITIALS RCO OBSERVATIONS This inspection was performed by the Division as part of its monitoring of Construction Materials 110 permits. The operator's office was contacted about the scheduled inspection. The operator was not present during the inspection. The site was not active at the time of the inspection, though the operator had personnel maintaining the access road (not included in permitted area), and personnel delivering a wheeled diesel-powered screen to the pit floor onsite. There is no permit ID sign down at the base of the access road near the county road. There is a sign at the upper end of the access road, near the SW corner of the permit. No permit boundary markers were evident, and this is noted as a problem in this report. The The lower portion of the permitted site consists of a stockpile and processing area near the base of the long access road. This stockpile and processing area has not been disturbed. The upper portion of the site consists of a steeply walled quarry and bench/floor at the base of the highwall. All drainage from slopes above the highwall, as well as the highwall area itself, reports to the pit floor. No drainage control structure was evident, though it is presumed that some of the drainage percolates into the bench surface. Much of the pit floor drainage on the western half of the floor, however, drains directly to the gulch at the SW permit corner, and then down the gulch along whose channel much of the access road is constructed. There is no stormwater correction date. See the last pane for the correction date. The 2003 annual report stated that the operator was working with BLM to amend the permit, but nofollow-up materials (new map or amended plans) have been filed with DMG. The 2005 and 2006 annual reports stated that there were no changes at the site, though it is known that a large portion of the highwall failed and sloughed, leaving an unstable scarp near the permit The floor did not contain any stockpiles. The only equipment onsite were the power screen and a grader. There was no fuel stored onsite, no debris, no noxious weeds and no contamination. The highwall, containing weathered rock and competent bedrock, was about 50 to 70 feet tall. There is a narrow road bench along the top of the highwall. A central portion of the highwall has failed, isolating the upper NE corner of the disturbed area. Since the boundary markers were not evident, it is not known how close the slope failure is to the boundary. The operator has begun to place boulders along the toe of this section of the slope, to try to buttress the it. So far, all boulders are generated onsite. If additional material from offsite is needed, a revision to the permit will be needed prior to importing such material (pursuant to Rule 3.1.5(9)). The bond is still $4200, the same amount approved when the permit was issued. Though the reclamation plan is minimal, reclamation costs have risen and there is now additional amounts of reclamation (drainage control, backfilling, benching and armoring) to pertorm. New reclamation costs will be sent to the operator for review. No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of Reclamation, Mining and Safety, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no. 970- 247-5193. Cont.