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.:~ <br />September 16, 2003 <br />Basin Resources. Inc. <br />C/O-Peak Project Management <br />3800 Co. Rd. 63.9 <br />Trinidad, CO 81082 <br />Golden Eagle Mine <br />Partial, special focus oversight inspection. <br />September 10, 2003 <br />Participants: <br />Ron Thompson, Peak Project Management <br />Bobby Steele, Lorencito Coal Company <br />Kent Gorham, Colorado Division of Minerals and Geology (DMG) <br />Henry Austin, Office of Surface Mining (OSM) <br />I participated in a special focus inspection at the Golden Eagle Mine on September 10, 2003, <br />with the above participants. Weather conditions were mild and windy with recent rain showers in <br />the area. Ground conditions were damp with water standing in some areas and signs of recent <br />surface water runoff in drainages. We limited our inspection to an evaluation of the one <br />development waste pile on site to first determine any offsite environmental impacts; and second <br />to evaluate reclamation success on the completed pile. We did not document any offsite <br />environmental impacts; and concluded that the pile enjoys revegetation success capable of <br />stabilizing the replaced soil materials, reproducing itself, and establishing. a long term <br />successfully established and diverse vegetative community. This special focus inspection was <br />selected by the joint DMG-OSM Oversight Team for evaluation during the 2004 evaluation year. <br />Records were not reviewed during the inspection as this pile has been reclaimed for several <br />years, and sedimentation ponds have also been removed. We met at the mine and discussed the <br />nature of our special focus inspection, then Mr. Gorham led us as we walked all the reclaimed <br />disturbance areas of the pile, and surface water runoff control areas associated with the pile. I <br />have inspected this mine for several years, and both Mr. Gorham and Mr. Thompson recalled <br />several reclamation milestone accomplishments during this several year period as we walked and <br />made general observations of the reclaimed pile and water conveyances. <br />Both Phase I and Phase II bond releases have been approved for the reclaimed pile, as well as the <br />other reclaimed disturbances at the former surface facility area associated with this underground <br />mine. OSM letters to DMG providing concurrence for the above bond releases are dated March <br />13, 1998, and March 28, 2001, respectively. OSM participated in both bond release inspections <br />and evaluated performance standard and permitting requirements for the development pile during <br />these joint inspections, with no problems noted in the record. The final RPE certification for the <br />pile occurred during February 1998, and DMG approved this certification during March 1998. <br />