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Kaiser Ventures Box 37 Desert Center, CA 92239 C-81-023 Chimney Rock Mine 9/28/04 Phase III Bond Release inspection Mitch Rollings, OSM Tom Kaldenbach, DMG Glenn Raby, USFS Mike Keegan, Kaiser Resources, Inc. Jerry Koblitz, Greystone Environmental Consultants, Inc. Mel Martinez, landowner Amos Martinez, landowner's son William Zimsky, attorney for Martinez This was a Phase III bond release inspection for the remaining 94 acres under bond the on the Chimney Rock Mine. The permit area is 170 acres. The 94 acres has previously been given a Phase I and II bond release. 16 acres of the permit which are an irrigated pasture and the surface facilities, including buildings, have been previously released under a Phase III in April 2003. All ponds and all diversions that have not been approved as permanent diversions have been removed. A permanent road has been left that extends from the old shop location, across the west slope of the East Pit, to a northern high point on the East Pit. The road surface was in good condition. The inside road ditch was eroded to a small extent with some vertical sides. The revegetation appeared rather aspect sensitive on the site; most prominently on the south facing slopes of the East Pit. We located some transects and compared vegetation reporting data with what we were seeing at the time of the inspection on both the disturbed area and the reference area. Visually, some of us had trouble reconciling those numbers, but judging vegetation solely on visual observations is inherently an inexact method. There were a number of erosion concerns on the site. Rills were throughout the south facing reclaimed landscape. However, in and of themselves, they did not constitute a violation of the approved program or permit.