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(Page 2} <br />MINE ID # OR PROSPECTING ID #M-1994-077 <br />INSPECTION DATE 05-24-2006 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS DEG <br />Larry Champ, Washington County District Road Foreman, accompanied Deb E. Gbnima of the DMG during this inspection of <br />Washington County Permit Number M-1994-077. The pit is located several miles southeast of Last Chance, Colorado, and east <br />of State Highway 71. <br />The site is currently active, material has been stockpiled on the permit area and some of it has been removed recently, <br />although there was no equipment on site at the time of the inspection. Since the last inspection performed on March 16, 2006 <br />the Operator has submitted an application package to convert their current 110c permit to a 112c permit. During the conversion <br />application process the operator had the site re-surveyed. The surveyor re-staked the current permit boundaries as a part of <br />this process (see photos 1 and 2). The operator requested that DMG reassess the mining boundaries of the site, given this <br />new information, and make a determination based on the revised current permit boundary stakes. As a result, DMG inspected <br />this site again at the request of the operator. <br />This inspector measured (using pacing and distance wheel) and shot angles of orientation based on the original permit maps <br />and found the new permit boundary stakes to be accurately placed. Consequently, the operator is not mining outside the permit <br />boundaries, and is not in possible violation of C.R.S 34-32.5-116(4)(1) and Rule 3.1.5(3) for failure to protect areas outside of <br />the affected land from damage occurring during the mining operation and reclamation. W hile ahigh-wall exists on the eastern <br />portion of the permit boundary, it was apparent to this inspector that this wall exists as a result of historical flood events, and not <br />mining (see photos 3-5). Even with the steep 2:1 slopes of this bank-cut; the area has older well-established native vegetation, <br />and has not been disturbed by any mining activities (see photos 6-8). <br />As a result of these new findings the Division has withdrawn the possible violation item from Mined Land Reclamation Board <br />consideration. A letter to this effect is attached with this inspection report. <br />The operator was reminded that the conversion application must state the quantity, dimensions and location of topsoil <br />stockpiles. <br />Responses to this inspection report should be directed to Deb E. G6nima at the Division of Minerals and Geology, Denver <br />Office, 1313 Sherman Street, Room 215, Denver, Colorado 80203, phone number 303-866-4179. <br />I & E Contact Address cc: <br /> ^ CE <br />NAME Mr. Larry Champ -Road Foreman ^ BL <br />OPERATOR Washinoton Countv ^ FS <br />STREET 150 Ash Street ^ Hyy <br />CITY/STATE/ZIP Akron. CO 80720 ^ HMWMD (CH) <br /> ^ SE <br /> ^ WOCD (CH) <br /> ^ OTHER <br />cc: Carl Mount, DMG via a-mail <br />