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• (Page 2) • MINEyID # OR PROSPECTING ID # M-94-117 INSPECTION DATE 09/01/98 INSPECTOR'S INITIALS CLK OBSERVATIONS The following observations were made during this inspection of this 8.4 acre 110(2) site. A liquids spill was reported on August 27, 1998 to the Division. Following receipt of various written explanations of the circumstances surrounding the August 24 spill from ITEC, DMG decic.ed to inspect the site to verify the information and determine if there was cause for concern. New infozmation was given to DMG during this inspection; unlike previous estimates, it is now believed that only approximately 350-650 gallons of water total escaped the dewatering process. A valve was left open in the line below the pond. This was found after a few minutes wortYi of pumping from the Hazel A Adit failed to produce any water, and the pumps were turned off zifter the leak was found. The pumps were turned back on after the valve was turned off. Approximately 300-600 gallons was lost from this spill, according to the Operator. A second spill occurred on the same night when a Y channel burst right above the Hazel A adit, and again, the pipes were turned off while the line was repaired. At this time, the evidence at the rite backs up these statements --- the liquid trails from both the valve and the broken Y pipe do not appear to have been large enough for any fluid to reach the road below the Haze:L A adit, much less the gulch below (and Summerville). This quarter's water quality data supports ZTEC's contention that the Hazel A water is clean, and that there is little cause for concern from spills this small. ITEC has changed their policy regarding reporting of any spi1~1 incidents, as well as more careful checking of the valves and lines prior to pumping. Further details regarding seepage near the adit were given to DMG at the time of the inspection. At this time, no seeps near the Hazel A Adit are active, and it is believed that a recent increase in water downstream of the site is due to large rains above the site causing a slug of groundwater to work its way downhill to Summerville. Ore left at the site by the previous Operator was examined and discussed during this inspection. A pile of processed ore has been left in place with a plastic cover to prevent runoff outside of the Mill building; Ted Gengler stated that ITEC intended to either ask the previous Operator to claim and remove the material, or explore their options for disposing of i.t themselves. The material has been onsite since August 15, 1998, and as such, the current permittee has 180 days (February 15, 1999), to remove it from the site in accordance with Rule 1.1(2). DMG is requesting that the Operator keep the Division informed on their progress in disposing of this material, and any difficulties that may occur. Any action regarding use of the ore in the geotextile liner will require further discussion before DMG is willing to approve its use in the pond construction. I & E Contact Address NAME; Maxine Stewart OPEFATOR ITEC Environmental STREET 707 17`" Street, Suite 310 CITS'/STATE/ZIP Denver, Co 80202 cc: Carl B. Mount, DMG ^ CE ^ BL ^ FS ^ HW ^ HMWhID (CH) ^ SE ^ WQCD (CH) ^ Other Ted Gengler, ITEC (see above) Bill Hambly, ITEC (see above)