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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1977-311 <br />INSPECTION DATE: 11-06-06 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining and Safety for permitted sites. The Ike No. 1 Mine, (SR-11), is located west of Slick Rock in <br />Southwestern Colorado. The 112 permitted site is in the beginning stages of development. Glen Williams, <br />representative for Cotter Corporation and Ed Cotter representative for the Department of Energy accompanied the <br />inspector on site. <br />The mine identification sign and affected azea boundary markers are in place and incompliance with Rule 3.1.12. <br />The sign is located at the gate for the mine main entrance. Permit boundaries are marked by blue/white surveyor <br />tape. The inspector recommends that when operations resume that t-posts replace the tape as more permanent <br />markers. However, at this time the tape is adequate. <br />The azea has had significant record rain fall in the past month as other sites. The site has faired well with some <br />impact from erosion. Impacts are noted primarily along the western dump area. Rilling and gullying was created <br />when a breach of a berm from the portal staging area dumped onto the western dump area. A subsequent breach <br />allowed flows to leave the area. Slash timber and brush created a natural silt fencing that prevented off-site damage. <br />A retention pond located in the southwest portion of the dump area held very well and prevented off site <br />sedimentation and erosion. Minor repairs to berms and grading will correct any problems. At this time, no <br />problems are noted, but the operator should do repairs at the earliest convenience. <br />A topsoil or at least top soil like material has been salvaged prior to the dumps being established along the eastside <br />of the permit area. The material will probable be augmented by periodical cleaning of sedimentation ponds, etc. <br />The operator should plan on seeding the area to prevent erosional losses in the spring. <br />The inspector noted some mine related debris very close to the topsoil stockpile area. This type of material is <br />typically buried within the waste piles which is an accepted practice for non-hazardous materials. However, the <br />debris should not be stored near topsoil to prevent contamination by foreign materials. When activities resume, this <br />material should be moved away from topsoil stock pile areas. <br />No petroleum or other classified materials were noted on site. <br />The mine portal is double locked and secure from unauthorized entry. No equipment was noted on site at this time <br />as well. <br />The reclamation cost estimate was not recalculated as part of this inspection. The current estimate was recalculated <br />less than three years ago and the operation is in compliance with the approved mine plan and reclamation plan. <br />Therefore, the current financial warranty is believed to be adequate to reclaim the site per the approved reclamation <br />plan. <br />No issues or problems are noted at this time. <br />