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(Page 2) <br />MINE ID # OR PROSPECTING ID #: ~~-~ 9R5_m~ <br />INSPECTION DATE: 7/24/Oy INSPECTOR'S INITIALS: KAP <br />OBSERVATIONS <br />This inspection was performed as a follow up to previous inspections conducted in order to calculate an <br />accurate bond amount for the site. Present at the inspection were Kate Pickford and David Bird, DRMS. <br />Weather at the time of the inspection was clear, calm, and approximately 75 degrees. <br />The bond amount for the site has been recalculated based on surface conditions and measurements <br />taken at the site and on the approved reclamation plan. The bond calculation has resulted in a new <br />bond amount of $308,916.00. This far exceeds the current bond held for the site in the amount of <br />$13,225.00. The Division is aware of some issues that may reduce the new bond amount, but the <br />Operator will need to work with the Division in order to reduce the amount. Some measures available <br />to reduce the new amount include the Operator conducting some reclamation at the site in order to <br />reduce the reclamation liability. The Operator may also revise the current plan, upon approval of the <br />Division, to reduce reclamation costs. One example is that the Division has observed that the proposed <br />seed mix for revegetation is much more expensive than is necessary. Deadlines for actions related to <br />the bond for the site can be found under problem 1, page 3 of this report. <br />3. A second problem identified by the Division during this inspection, and the related record review, is that <br />the Operator, Penn Mountain Mining, Inc., is not registered with the Colorado Secretary of State's <br />Office. Please see problem 2, page 3 for measures necessary to rectify this problem. <br />4. The third problem related to this inspection relates to the fact that adequate active mining has not <br />occurred at this site to remain in active status. Additionally, the site is in enough of a state of disrepair <br />that it cannot currently operate. The Operator must submit a request for Temporary Cessation status for <br />the permit, but in order to do so the site must have an adequate financial warranty (See problem 3, <br />page 4 of this report). <br />5. Multiple problems related to this permit are cited in this report. The problem section of this report <br />establishes deadlines for compliance for each problem. The Operator is further urged to contact the <br />Division to aid in identifying measures to bring the site into compliance. <br />I & E Contact Address <br />NAME: John Browning <br />OPERATOR: Penn Mountain Mining. Inc. <br />STREET: F1t37.C ~A55 F <br />CITY/STATE/ZIP: C~gc1Pn 11T R44n3 <br />Cc: ^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WQCD (CH) <br />X Other: Tony Waldron, DRMS <br />