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(Page 2) • ' MT~IE ID # OR PROSPECTING ID # M-99-002 INSPECTION DATE 1-20-00 INSPECTOR'S INITIALS ACS American Soda started construction at the Piceance Site upgrade facility location in early January 2000. This inspection was conducted to observe the progress of the construction and to audit topsoil salvage operations and storm water controls at the construction site. The Yellow Creek Jeep Trail is used to access the construction site. This road is part of the Rio Blanco County road system and was improved by American Soda in cooperation with the county. Improvements include establishment of a uniform 15-foot width, culvert installation, grading and gravel surfacing, and installation of pull out areas every 1000 feet. These are permanent improvements to the county road, and will not be removed at the time of reclamation. As such, the improved road does not have to be included in the reclamation permit area and a portion of the improved road is outside American Soda's lease area. The Piceance site facilities area has been cleared and grubbed. Stumps are being burned in an onsite pit. Diesel fuel was used to start the fire initially, and the fire has been self- propagating since that time. Burning does not occur in windy conditions, and a 3000-gallon water wagon is present onsite if needed for fire fighting. Topsoil has been stripped from most of the facilities area and from a portion of the possible future evaporation pond location. The evaporation pond location is being used as a lay down area in support of facilities construction project (see discussion below). The storm water pond has been partially cleared. The operator stated that excavation for the storm water pond will commence Monday, January 24. Colorado Lining Company is scheduled to install the storm water pond HDPE liner once the pond is prepared, weather permitting. Topsoil is stockpiled at the northeast corner of the Picenace Site facilities area. Topsoil depths from the stripped area have ranged from 6 inches to two feet. Topsoil has been stripped from the entire project site except a few locations where bedrock is exposed at or very near the surface. The Operator estimates that topsoil salvage operations are approximately two-thirds complete. Once all the topsoil is in stockpile, the pile will be graded to maximum 3:1 side slopes and seeded. The maximum depth of the pile will be limited to approximately 22 feet. The Operator should establish perimeter runoff controls around the final graded pile until vegetation is established. Silt fence or perimeter ditching would be appropriate. Observation and discussion of storm water controls at the site was as follows. Once the storm water pond is constructed, the ditch work approved in the reclamation permit will carry virtually all runoff from the disturbed area to the storm water pond. If weather precludes installation of the liner until spring, the unlined pond will be used. The unlined pond would be cleaned out and the base of the pond prepared prior to liner installation. Until the storm water pond and the ditch work are installed, the culverts under Yellow Creek Jeep Trail will be plugged and the berm formed by the road will be used to retain any runoff from the disturbed area. In the final grading plan, a small fill slope at the northeast corner of the facilities area will not drain to the storm water pond. This fill slope will be graded to a maximum slope angle of 2:1 and will be seeded. Until vegetation is established on this fill slope, the Operator will treat runoff from the slope using silt fence with a straw bald installation at the point where runoff from the slope may be expected to concentrate. The location and proper installation of the straw bales was discussed in the field. The following additional topics were discussed during the inspection: Well water from the test mine facility water supply well will be used to mix concrete for the project. Concrete test cylinders are being prepared to assure that this water in the mix will yield the specified minimum concrete strength. • The ditch work to route runoff from the disturbed area to the storm water pond will be installed following completion of backfilling and rough grading operations. This is scheduled to occur by the end of February. • Perimeter fencing is scheduled for installation by the end of February.