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• (Page 2) • <br /> MINE ID # OR PROSPECTING ID # M-77-451 <br /> INSPECTION DATE 3/30198 INSPECTOR'S INITIALS WHE <br /> OBSERVATIONS <br /> This inspection occurred as part of DMG routine monitoring plan for permitted operations. Dave Diss <br /> accompanied the DMG inspector throughout the inspection. Snow cover was approximately 3" deep. No <br /> mining activities were observed, operations appeared dormant during the time of this inspection. Livestock <br /> were observed within the permit area and in surrounding areas. DMG holds $18,870 financial warranty. <br /> Records - DMG Durango Office records indicate that the original 110 permit was issued on 2/1 5/79, to W.S. <br /> Dawson, for 2 acres affected area, located in portions of the NW 1/4 of the SE 1/4 of Section 8, T43N, <br /> R19W, NMPM, San Miguel County. On 1/24/85, DMG approved SO-01 for Cotter Corporation as successor <br /> operator. On 10/18/90, DMG approved CN-01, converting the 110 permit to a regular 112. DMG records <br /> do not indicate additional revisions to the permit. <br /> CN-01 added 11.3 acres to the affected area, located in portions of Section 17 & 18, T43N, R19W, NMPM, <br /> San Miguel County. DMG records do not indicate that the original 2 acre area, approved under the original <br /> 110 permit, have been released. Therefore total permit area is 13.3 acres. Please find attached, copy of a <br /> portion of the San Miguel County map, scale 1:50,000, showing general location of the two areas approved <br /> under the permit. Please respond if DMG records conflict with information contained within Cotter Corp files. <br /> Signs & Markers - Mine identification sign was posted at mine entrance. Affected area perimeter markers <br /> were observed. <br /> Facilities - Disturbances appeared to be limited to a pre-permit decline, waste rock stockpile, vent hole and <br /> access roads. The waste rock stockpile had been graded to a dome configuration with outslopes not steeper <br /> than 3H:1 V, topsoil cover replaced and seeded. Reclaimed waste rock stockpile appeared stable. <br /> Revegetation efforts may be hampered by uncontrolled livestock grazing. Vent hole was not inspected. <br /> Financial Warranty - The existing bond includes the following reclamation cost estimations: <br /> Plug vent hole - $ 5,240 <br /> Seal portal - $ 1,600 <br /> Demolition - $ 4,800 (buildings &structures) <br /> Grade dump - $ 1,680 <br /> TS &seed - $ 2,484 <br /> Rip road - $ 492 <br /> Mob/demob - $ 2.574 <br /> Total cost - $18,870 <br /> Given the lack of buildings requiring demolition ($4800), and the completion of grading, topsoil replacement <br /> and seeding of the dump ($4164), the existing bond appears to be more than adequate to ensure reclamation <br /> of the vent hole, portal and access roads. Please provide details of the vent hole (hole diameter and depth) <br /> and the method for closure and reclamation of the vent hole proposed by Cotter. <br /> I & E Contact Address cc: Tom Gillis, DMG <br /> ❑ CE <br /> NAME Dave Diss ❑ BL <br /> OPERATOR Cotter Corporation ❑ FS <br /> STREET P.O. Box 700 ❑ HW <br /> CITY/STATE/ZIP Nucla. CO 81424 ❑ HMWMD (CH) <br /> ❑ SE <br /> ❑ WQCD (CH) <br /> 0 OTHER <br />