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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1983-001 <br />INSPECTION DATE 08/16/2006 <br />INSPECTOR'S INITIALS DEG <br />This inspection of Permit Number M-1983-001 was conducted by Deb E. G6nima of the DMG as a fallow-up to corrective <br />actions taken by the Operator. No county representative was present during this inspection. The pit is located 1 mile east and 4 <br />miles north of Cope, CO and currently consists of approximately 9.8 acres. <br />The mine name and permit number on the mine entrance sign were faded and must be made more clearly visible per Rule <br />3.1.12(1)(c). In addition, this site still lacks all necessary clearly defined permit boundary markers. Specifically, this inspector <br />was unable to locate the southeastern permit boundary marker. Therefore, per Rule 3.1.12(2) the operator must clearly mark <br />the boundaries of the affected area with monuments or other markers that are clearly visible and adequate to delineate such <br />boundaries (see photos 1 and 2 and Problem No. 1 and the corresponding corrective action noted on page 3 of this report). <br />Finally, to seek resolution to the issue of off-site disturbance and possible mining-related activity taking place outside if the <br />approved (and posted) permit boundaries, this inspector researched the history of this operation and the initial condition of the <br />site, and found that the original permit noted some level of disturbance at the southwestern portion of the area. Therefore, this <br />inspector finds that, while there is clear disturbance (see photo 3) outside of the current permit boundaries, this affected area <br />was once part of a historical mined area that occurring prior to the approval of the current permit. Therefore, the operator is not <br />responsible for any disturbance originating from this area. However, the operator remains responsible for the continued <br />containment of mining related disturbance (to the north of this area) on site and compliance with all applicable state regulations. <br />Responses to this inspection report should be directed to Deb E. Gbnima at the Division of Minerals and Geology, Denver <br />Office, 1313 Sherman Street, Room 215, Denver, Colorado 80203, phone number 303-866-4179. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITYISTATE/ZIP <br />Mr. Larry Chamg -Road Foreman <br />Washington Countv Road District #3 <br />P.O. Box 32 <br />Anton. CO 80801 <br />cc: <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />cc: Carl Mount, DMG via a-mail <br />