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(Page 4) MINE ID # OR PROSPECTING ID # M-77-522 INSPECTION DATE 5/2d/2000 INSPECTOR'S INITIALS TAS The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified dcrirg this inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. PROBLEMS/POSSIBLE VIOLATIONS AND CORRECTIVE ACTIONS 1. There was no entrance sign and the affected land boundary was not marked as required by Rule 3.1.12. CORRECTIVE ACTIONS Post an entrance sign and mark the affected land boundary as required by Rule 3.1.12 (see attached copy). Submit photographs verifying completion of these tasks. 2. The operator has exposed groundwater in the absence of an approved well permit and approved plan for mitigation of groundwater exposed after December 31, 1980. This action puts the operator in non-compliance with the approved mining and reclamation plan, and Rule 3.1.6(1)(a). CORRECTIVE ACTIONS The operator must complete one of the following corrective actions on or before 5:00 P.M. August 14, 2000 A) backfill all groundwater exposed after December 31, 1980 to an elevation that is at least two (2) feet above the groundwater surface, B) submit to the Division written correspondence from the Office of the State Engineer (OSE) which states that the Herman Feit Pit is in compliance with all OSE requirements, C) submit either a replacement financial warranty of $3,015,200 or a supplemental financial warranty of $3,001,200. CORRECTION DATE June 23, 2000 PB or PV PB TOPIC(S) SM August 14, 2000 PB or PV PB TOPIC(S) MP,HB FN