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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2001-001 <br />INSPECTION DATE 2I3I05 <br />INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred from air photos taken on February 3, 2005. One air photo is enclosed with this <br />report. Copy of the digital air photo(s) can be forwarded to the operator upon request. <br />The Line Camp Pit is approved for 22.6 acres affected area. Affected lands will be reclaimed to support <br />developed water resources and pastureland post-mining land use. DMG holds $92,000 financial <br />warranty. Permit status is active. <br />As shown on the air photo, mining and reclamation activities appear to be confined to approved areas. <br />Mining activities appear to be in a transition between year 3 and 4, as described in the permit documents. <br />Waterwas impounded within the southern portions ofthe pit. Evidence of discharge from the pitwas not <br />observed. Topsoil stockpiles S3 and S4 border the active pit along the soufh, southwest and southeast. <br />Overburden stockpiles S5 and S6 border the active pit along the west and east sides. The material <br />stockpiles do not form a continuous embankment around the pit. Two gaps in the material stockpiles are <br />located at the southeast corner of the permit area. The gaps appear approximately 20 feet wide at the <br />base. Affected lands appeared stable, no evidence of slumping, settling or excessive erosion was <br />observed. <br />On April 18, 2001, DMG calculated the cost of reclamation at $91,917. The current disturbance is <br />significantly less than the disturbance anticipated for the reclamation cost estimation. Therefore, the <br />existing $92,000 financial warranty appears sufficient to ensure completion of reclamation. <br />No problems or possible violations were observed. However, the problem of absent vegetative cover for <br />stockpiled topsoil, identified in DMG's report from the October 5, 2004 inspection, and its associated <br />corrective action deadlines, remain in effect. <br />Response to this report should be directed to Wally Erickson at the DMG Durango Office, 701 Camino <br />del Rio, Room 125, Durango, CO 81301, phone (970) 247-5469. <br />I & E Contact Address <br />cc: Harry Posey, DMG <br />^ CE <br />NAME Arvol Brumley ^ BL <br />OPERATOR Four States Apcregates. LLC ^ FS <br />STREET P.O. Box 1568 ^ HW <br />CITY/STATE2IP Cortez. CO 81321-1568 ^ HMWMD (CH) <br /> ^ SE <br />