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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1977-310 <br />INSPECTION DATE 10/10/02 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS GRM <br />This inspection was preformed as part of the normal monitoring program established by the Colorado Division of Minerals and <br />Geology. The JD-6 Mine is located approximately 12 miles northwest of Naturita, Colorado. The 110(2) permit allows 6.24 <br />acres of effected area and is listed as intermittent status. The Division holds a $2500.00 bond under Rule 4.2.1(8). DOE holds <br />a $19,000.00 bond on this site for reclamation. The inspector was accompanied by Cotter Representatives Dave Diss and <br />Jon Showalter. <br />The JD -fi Mine uses the Duggan Adit, at the Mineral Joe Mine for access. Both sites were inspected at this time. <br />The Duggan Adit has a secured steel gate and lock to control access. <br />The main and ancillary roads were in fair to good condition. A recent major rain has caused rilling and sand bars on all roads <br />in the area. Mine roads appear to have held up better than some of the county roads. <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. <br />The waste piles on site have been significantly impacted by a major rain storm a few years ago. The high flow of run-on to <br />the site is attributed to the fact that a major drainage dumps onto the site. Cotter has built a diversionary dam and utilized an <br />old drill road as a channel to deflect run-on to the next drainage over which joins with this one further down gradient. A <br />retainage pond and berms along the edge of the waste dumps has helped reduce or eliminate the stormwater impact. This <br />observation is based on the recent rain that impacted the area surrounding the mine and no visible evidence of recent erosion <br />to the site. Under normal circumstances this issue would be listed as problem with a corrective action to repair erosion and <br />possibly address further control measures. However, Cotter has indicated that this site is scheduled for full reclamation next <br />year. Control measures in place appear to have corrected the situation until the site is addressed then. If Cotter decides <br />against reclaiming this site next year, then it must address the erosion repairs to the waste piles next summer. <br />In general the site is clean of trash or debris. Some rail and air duct are scattered around the site but are not considered a <br />overly negative. Reconstruction and repairs to a loading area has produced some scrap timber. Ail of this will be removed <br />or buried with reclamation efforts. <br />No hazardous materials or waste were noted on site. No surface or ground water issues were apparent. Off site damage was <br />also not observed. <br />Cotter informed the inspector that work plans are being compiled to begin full reclamation of this site. An updated bond <br />calculation for this site will be sent to the operator within 30 days. As discussed, the update will reflect the current cost of <br />previously agreed upon tasks between the Division and Cotter Corporation. <br />Responses to this inspection report should be directed to Russ Means at the Division of Minerals and Geology, Grand Junction <br />Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. <br />I & E Contact Address <br />NAME Dave Diss <br />OPERATOR Cotter Corporation <br />STREET P.O. Box 700 <br />CITY/STATE2IP Nucla. Colorado 81424 <br />cc: <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />