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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1980-022 <br />INSPECTION DATE 3-16-2006 <br />INSPECTOR'S INITIALS SSS <br />This inspection was conducted at the operator's request, to evaluate what measures are necessary to complete reclamation at <br />the site <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. <br />No significant infestations of noxious or other problematic weeds were noted on site during this inspection. <br />No significant erosional features were noted on the affected areas of the site. <br />The operator has indicated a desire to turn the office into a residence, and has sold the property to an employee who is <br />currently doing just that. In order to leave the office as a permanent feature, a technical revision must be submitted that <br />addresses that change and includes documentation that the building is incompliance with local zoning and building codes. The <br />revision will also need to include a map that shows the extent of the proposed residential area within the permit area. If that <br />area is a large percentage of the total permit area, an amendment, rather than a technical revision, may be required to <br />accomplish this change. <br />Remaining reclamation can proceed as specified in technical revision no. 2. This includes regrading of north pit slopes, <br />removal of the water truck filling facility, application of soil amendments and revegetation of these areas, including the majority <br />of the north side of the permit area above water line that is not designated as residential use. The current parking lot east of <br />the maintenance shop supports the approved use of the shop and testing lab as a post-mine facility and can remain as is. <br />The truck scales have been removed, but the sub-grade foundation was left and filled with gravel. This is unacceptable, unless <br />the location of the scale is to be part of a driveway, equipment storage lot, or other similar feature that does not require <br />revegetation and supports the residential land use in this portion of the permit area. <br />To leave the chain link fence around the permit area and the truck scale foundation, the operator will need to obtain a signed, <br />notarized authorization from the current owner of the site. <br />The reclamation cost estimate was not recalculated as part of this inspection. The current estimate was recalculated less than <br />four years ago and the operation is in compliance with the approved mine plan and reclamation plan. Therefore, the current <br />financial warranty is believed to be adequate to reclaim the site per the approved reclamation plan. The operator is currently <br />drafting a revision to allow the office to be left as a permanent feature. DMG will recalculate the reclamation liabilityduring that <br />revision process. <br />Responses to this inspection report should be directed to Steve Shuey at the Division of Minerals and Geology, Grand Junction <br />Field Office, 101 South 3rtl Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-6368. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/Z1P <br />Brent Kerr <br />United Companies of Mesa Countv <br />P.O. Box 3609 <br />Grand junction. Colorado 81502 <br />cc: <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD(CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />