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III. COMMENTS -COMPLIANCE <br />Below are comments on the inspection. The comments include discussion of observations made during <br />the inspection. Comments also describe any enforcement actions taken during the inspection and the <br />facts or evidence supporting the enforcement action. <br />This was a partial inspection conducted by Tom Gillis of the Colorado Division of Minerals and <br />Geology. With the operator's consent, this report was issued from the Durango office. <br />The mine was active with trucks being loaded from the stack tube azea. The ground was still muddy <br />from weekend rains. <br />Hydroloaic Balance <br />Ponds. All ponds contained water at the time of the inspection, however water levels were well below <br />the elevation of the primary spillways. The west pond appears to have substantial sediment storage <br />capacity at the present time (pond has been cleaned out within the last couple of months). <br />Ditches. All ditches were functioning properly at the time of the inspection. The operator is aware of <br />the ongoing maintenance situation at the entrance to the development waste pile site and has a plan in <br />place for maintaining the road berm to prevent disturbed azea runoff from entering the clean water <br />ditch. <br />Processing Waste <br />The waste pile showed no evidence of structural instability. Recent dumping has created a few <br />temporary flat spots on a small section of the pile surface, however the operator is aware of the need to <br />maintain positive drainage off the surface of the pile and is taking steps to ensure positive drainage at <br />all times. <br />