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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1976-020 <br />INSPECTION DATE 9/2/04 <br />INSPECTOR'S INITIALS WHE <br />This inspection occurred in accordance with DMG monitoring policy of permitted operations. The <br />Thomas Pit is located approximately 12 miles north of Durango, in portions of the SW Ya of the SE ~/< of <br />Section 25, and in portions of the W'/z of the NE'/a of Section 36, both in T37N, R9W, NMPM, La Plata <br />County. The operation is approved for extraction of alluvial sand and gravel from a side channel along <br />the west side of the Animas River and from a pit area located adjacent to the west bank of the river <br />channel. The permit is also approved for material processing to include washing, screening, crushing <br />and concrete production. The Thomas Pit is approved for 34.81 acres affected area, DMG holds <br />$26,295 financial warranty. <br />Mining and processing activities appeared dormant. Mine identification sign and permit boundary <br />markers were posted. Site appeared stable, evidence of slumping, slope failure or excessive erosion to <br />the excavation areas or the processing yard was not observed. <br />The operator has installed the erosion resistant block ribs approved through AM-01 but has not <br />commenced the pond excavation approved through AM-01. <br />DMG has reviewed the current cost of reclamation, totaling $25,113. The enclosed 11 pages of <br />summary, worksheets and data sheets were utilized by DMG to determine the cost of reclamation. <br />Therefore, the existing $26,298 financial warranty appears adequate to ensure completion of <br />reclamation. <br />No problems or possible violations were observed. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Marcia Talvitie <br />Four Corners Materials <br />P.O. Box 2707 <br />Durango. CO 81302 <br />cc: Harry Posey, DMG <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOGD (CH) <br />^ OTHER <br />