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(Page 2) MINE ID # OR PROSPECTING ID #M-1979-205 INSPECTION DATE 5/20/03 INSPECTOR'S INITIALS GRM This inspection was preformed as part otthe normal monitoring program established by the Colorado Division of Minerals and Geology. The inspection was done to access current site conditions prior to a reclamation costs update to be undertaken by the Division staff. Rick Johnson, the operators representative, accompanied the inspector. The MMM /Chambers Pit is located approximately 2 miles east of Rifle, Colorado on US Highway 6. The mine identification sign and affected area boundary markers are in place and incompliance with Rule 3.1.12. The sign is posted at the main entrance near the railroad crossing as a person enters the site. Boundary markers are fence lines, t-posts and the Colorado River. An on going issue for this site is the Water Augmentation Plan for leaving the pit as a pond. The operator has been working on the plan for sometime now. With an approved Augmentation Plan, the cost for reclamation on this sitewill be dramatically less than if the pit must be backfilled. Staff understands that the plan is near completion, but until it is approved all reclamation cost must be based on backfilling. The approved Reclamation Plan for the 1998 Amendment states that only 4-acres of Phase II would be excavated until this plan is approved . On this visit it was observed that the entire 12.1 acres of Phase II and approximately 4.5 acres in Phase III have been mined out. The over excavation without the approved Augmentation Plan is reflected in the new bond calculations. If United /Old Castle has any documentation to show the Water Augmentation Plan is near approval, copies should be sent to this Office as soon as possible. If no documentation is available to support the near completion of the Plan, the new bond must reflect costs to backfill the entire current pit and anv future excavation. Also observed was a 500-gallon tank with a diesel placard sitting on bare ground. (See photo). Soil staining was observed near the hose outlet. The lack of secondary containment and proper storage of tanks is listed as a problem in the Corcective Action section of this report. No significant infestations of noxious or other problematic weeds were noted on site during this inspection. The topsoil / overburden stockpile is located on an adjacent permitted site at this time. Annual grasses and non-problematic weeds are helping keep the piles stable and erosion free. No erosion or sedimentation issues were noted at this time. All storm water generated on site appears to be being contained within the permitted area. In an effort to ensure the. financial warranty remains adequate to reclaim this site per the requirements of the approved reclamation plan, DMG will updated the reclamation cost estimate . The operator can expect staffs estimate for the reclamation costs within the next 30 days. No other issues were noted at this time Responses to this inspection report should be directed to Russ Means at the Division of Minerals and Geology, Grand Junction Field Office, 101 South 3rtl Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. I & E Contact Address NAME Rick Johnson OPERATOR United Companies /Old Castle STREET P.O. Box 3609 CITY/STATE/ZIP Grand Junction. Colorado 81502 cc: ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) p SE ^ WQCD (CH) ^ OTHER