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(Page 21 • MINE ID p OR PROSPECTING ID k M-1994-011 INSPECTION DATE 3-29-2001 INSPECTOR'S INITIALS SSS OBSERVATIONS This inspection was conducted as part of the Division of Minerals and Geology (DMG) monitoring program for permitted mines in Colorado. The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. No significant erosional features were noted on the affected areas of the site. No significant infestations of noxious weeds were noted on site during this inspection, but the old sediment ponds that are now filled are in need of weed control for annual weeds, followed by revegetation measures as specified in the approved reclamation plan. The operation has deviated from the approved mining and reclamation plans in numerous ways. These deviations have undoubtedly created a situation where the current financial warranty is insufficient to reclaim the site per the approved reclamation plan. Deviations from the approved permit specifications are noted below and are listed as problems on the last page of this report with corrective actions and corrective action due dates. • The sediment pond and water source pond adjacent to the main access road on the south side of the site have apparently been filled in with sediment, and a replacement pond, significantly larger than the approved settling pond has been excavated and is being utilized. This pond no longer receives flow from the Doing Ditch, but does discharge to this ditch. Please, by the correction date noted on the last page of this report, submit a revision application with a revised map illustrating this change. • The operator indicated that the upgradient portion of Doing Ditch is no longer used because of it's poor condition. The operator has installed a pump that now supplies water for the wash plant and dust abatement from the San Miguel River. Please, by the correction date noted on the last page of this report, submit a revision application with a revised map illustrating this change. Please be aware that this change in the point of diversion of water from the San Miguel River may require notification to the Colorado State Engineers Office, Division of Water Resources. A copy of this report will be forwarded to that office. The sediment pond outlet did not have a silt fence filter in place as specified in the approved mining plan. Please install a silt fence and submit photographic documentation of compliance with this corrective action by the correction date specified on the last page of this report. A copy of this report will be forwarded to the Colorado Department of Public Health and Environment -Water Quality Control Division. A groundwater well has been drilled at the west end of the feedlot unit. The operator indicated that this well was used to supply water for a concrete batch plant that is located there. He also indicated that the landowner wishes to permit the well and retain it for post mining use on the ranch. Please, by the correction date specified, submit a revision application to detail the installation of, and retention or plugging of the well and include documentation indicating that a permit for this well has been applied for. The approved mining and reclamation plans do not specify provisions for a concrete batch plant though there is a batch plant on site with several sections of concrete pad and footers, power supply, and an operations trailer. Please, by the correction date specified on the last page of this report, revise the permit to include specifications for installation, operation and reclamation of this plant, or remove it from the site and submit photographic documentation of completion of this removal. If the landowner wishes to retain any mining related features after mining is complete (groundwater well. concrete pads, etc.l, he will need to provide a signed and notarized request that must be submitted to DMG with a revision application requesting retention of these features. The current financial warranty was calculated for reclamation of the affected area east of the drainage that bisects the site and the northwest unit. The permit indicated that the reclamation bond for the feedlot unit would be provided prior to excavation of that unit, which was the last unit to be mined. The feedlot unit has already been mined and excavation of the north central unit and the northwest unit are ongoing. All of the excavation areas, except for 3-4