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(Page 2) MINE ID # OR PROSPECTING ID # M-1983142 INSPECTION DATE 1-29-04 INSPECTOR'S INITIALS GRM This inspection was conducted as part of the normal monitoring program established by the Colorado Division of Minerals and Geology. The Hall Pit is a 50 acre, 112c permitted site located south of Grand Junction on the east side of US 50. The Hall Pit has common boundaries with the Ford and BLM #1 Pits, both also owned by United. The Hall Pit was last inspected in 12/00 and the reclamation bond was reviewed shortly thereafter. Brent Kerr, United's representative was present for the inspection. The mine identification sign and affected area boundary mazkers are in place and incompliance with Rule 3.1.12. The entrance to the site is a shazed road with the other above-mentioned pits. The posted Mine ID sign lists all three sites. Permit boundaries aze delineated by t-posts spaced out along the slope below the day-lighted mining areas with the exception of the common boundary with the Ford Pit. T-posts at both ends of this boundary can be used to ascertain the actual permit edge. The site, along with the Ford Pit, is used primarily now as a staging area for materials from the BLM Pit # 1. Stockpiles of processed materials were noted in this azea. A visual inspection of the mesa slopes shows no signs of off site disturbance. A small safety berm runs along the crest of the mesa edge /pit floor that protects equipment and also helps contain storm run- off so that no erosion is occumng. Some wheatgrasses, four-wing saltbush and sage aze noted on the undisturbed mesa slopes. Five 1-gallon buckets were noted sitting on the baze earth of the pit floor. Some of the buckets appeazed to have oil or grease on the outside of the container but had not contaminated any soil. The operator's representative was to return Iater this day to pick up the buckets for proper disposal. The improper storage and disposal ofthese buckets is not listed as a problem because no soil contamination was observed and the small amount materials present did not warrant listing. Based on this and observations at other sites this day. it appeazs that United Companies needs to remind its staff of the importance of proper housekeepin¢ in reference to potential hazardous materials and waste. The issue is being noted for monitoring at this and other permitted sites. The Hall Pit is close fo the end of its active mining life. United has done some sloping and grading of disturbed areas and it appears to meet the approved reclamafion plan so far. The inspector noted at this site, like several others, that if some revegetation work was accomplished, United might be able to seek a release of some of these azeas. Given the barren environment of the mesa, it may take 5 yeazs or more to Qain anv type of sustainable vegetation on site to meet release requirements. It is to the operator's advantage to begin revegetation work now to insure release of the site in the future. Roads leading into the area aze in good maintenance. Bar ditches appeaz to handle any precipitation events and channel water to appropriate outlets. No other issues were noted at this time.