2002-05-01_INSPECTION - M1983052

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(Page 2) MINE ID # OR PROSPECTING ID #: M-i a8?-n~__ INSPECTION DATE: April 7 ~7002 INSPECTOR'S INITIALS: ('RM OBSERVATIONS This was a site inspection done by Carl B, Mount of the Division of Minerals and Geology in response to a bond cancellation (effective date, April Zt, Z002} by the corporate surety, United States Fidelity and Guaranty Company (Surety Bond No. 72 07 30 1 7066 98 0 in the amount of $236,000.00). Attending the inspection were Mr. Rob Ernst and Mr. Allen Young of the Bureau of Land Management's Crarg office. It was indicated that people represented as being from a company called Natural Organic Fertilizer operated the mill last summer. My conversations with Michael Collins of Mining and Minerals, Inc. indicate that these people did have approved access to the site in order to determine whether it could be a viable operation in the future. The site was found in similar condition to when it was last inspected. The mill building, lab/office building and shop building are all easily accessible to anyone that would care to visit the site. Further, many windows in the buildings are broken and allowing access by rain and wildlife into the building. The gate at the entrance to the site is easily bypassed and there are some chemicals in the lab/office building that could be hazardous to trespassers on the site. The Division recommends that the operator upgrades the gate and secures the buildings to prevent access by people not associated with the site at this time. Used oil was stored behind and to the west of the mill building in open containers and oil was spilled on the ground in this area. This material must be cleaned up and treated in an approved manner or hauled off to an approved disposal facility. If hauled off, the operator must demonstrate, through receipts or other acceptable documentation, that the material has been properly disposed of. See PB 2 below. Observations were made and measurements taken to determine the amount of reclamation that would need to be done at the site and determine whether the present bond was adequate. Also, these observations and measurements were done to document the amount of disturbance on site as soon as possible after the April 21, 2002 cancellation date. It appears that, from the amount of bond and the bond recalculation done in 7999 that the present bond amount is sufficient to reclaim the present amount of disturbance at this time and that disturbance as contemplated by the permit documents. However, as noted above the present Surety has canceled the bond. See PB 1. I & E Contact Address NAME: Mr. Michael Collins OPERATOR: Mining and Minerals, Ltd. STREET: 8115 Preston Road #680 ^ ^ CE BL CITY/STATFJZIP: Dallas. TX 75225 ^ FS ^ HW ^ HMWMD (CH) ^ SE cc: Mr Rob Ernst ^ WQCD (CH) . US Bureau of Land Management ^ OTHER 455 Emerson Craig, CO 87625 Barb Chiappone, DMG