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(Page 3) MINE ID # OR PROSPECTING ID # M-1982-198 INSPECTION DATE 11/09/01 INSPECTOR'S INITIALS ESC The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. PROBLEMS/POSSIBLE VIOLATIONS AND CORRECTIVE ACTIONS DATE 1. The mining pit slopes in the North Pond appears to be unstable _ due to the seeping of water from the South Platte River. PB or PV:PB Several slides and slumps were observed within the pit area. TOPIC(S):OD 34-32.5-116 (4)(i) states that areas outside of the affected land 01-09-02 shall be protected from slides or damage occurring during the mining and reclamation operations. CORRECTIVE ACTION The operator shall submit a technical revision to the permit addressing the stability of the north pit slopes in relation to the South Platte River. Such revision shall contain measures to stabilize the slope to ensure that the South Platte River is not impacted. Such revision is due on Jaauary 9, 2002. 2. The north pit is permitted as a wet mining operation. PB or PV:PS Dewatering of the pit for reclamation is not an approved TOPIC(S):HB practice. 01-09-02 CORRECTIVE ACTION The operator will need to provide a demonstration to the Division in the form of a technical revision to the permit addressing dewatering in the north pit. Specifically, the operator will need to address if dewatering will have an adverse impact to the surrounding hydrologic balance and/or impacts to adjoining owner's water rights. Such revision is due on January 9, 2002.