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(Page 2) MINE ID # OR PROSPECTING ID # M-1976-020 INSPECTION DATE 4/25/07 INSPECTOR'S INITIALS WHE OBSERVATIONS This inspection occurred in response to a request from the Operatorfor DRMS to observe and document river channel stabilization work recently completed in accordance with US Army Corps of Engineers (COE) permit requirements. Reclamation grading was occurring at the processing yard during the time of the inspection. Eight photos accompany this report. As shown in the photos, the river channel stabilization work includes the installation of several V-weirs and boulder vanes, as well as the removal of the historic COE flood protection dike. The V-weirs and boulder vanes appeared to have been constructed to direct the thalwag towards the center of the channel and to minimize erosive velocities at near-bank regions. Alf portions of the historic COE flood protection dike located above the seasonal high water elevation had been removed from the floodway. Cottonwood trees and willow shrubs, which had naturally established on the dike along the water line, had been preserved and not removed. Such vegetation is essential for bank stability. Removal of the historic dike benefits the channel by removing an obstruction from the floodway and increases the channel capacity during flood stage. Approximately 16 concrete blocks, measuring 4 feet wide by 4 feet long by 3 feet high, were stockpiled above the river bank and waiting installation into the bank. Individual blocks had recently been installed in the west bank, immediately downstream of the jetty structure and below the double row of blocks, approved under AM-01, where scouring had previously occurred. The west bank jetty structure and the pond, approved through AM-01, appeared intact and stable. The open channel spillway for the pond appeared well constructed and lined with large rock. Vegetative cover for the portions of the embankment upslope of the concrete blocks was establishing but inconsistent in extent of cover. Establishment of the 360 Willow shrubs and 75 Cottonwood trees for the embankment, as approved through AM-01, had not yet occurred. The Thomas Pit is approved for extraction of alluvial sand and gravel from a side channel along the west side of the Animas River and from a pit area located adjacent to the west bank of the river channel. The permit is also approved for material processing to include washing, screening, crushing and concrete production. The Thomas Pit is approved for 34.81 acres affected area, DMG holds $26,295 financial warranty. No problems or possible violations were observed. I & E Contact Address NAME Marcia Talvitie OPERATOR Four Corners Materials STREET P.O. Box 2707 CITY/STATE/ZIP Durango. CO 81302 cc: Tony Waldron, DMG X, COE, Kara Hellige ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WQCD (CH) ^ OTHER