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(Page 4) MINE ID # OR PROSPECTING ID # M-1992-116 INSPECTION DATE 2/22/05 INSPECTOR'S INITIALS WHE The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. PROBLEMS/POSSIBLE VIOLATIONS AND CORRECTIVE ACTIONS Affected area boundary markers, required under Rule 3.1.12(2)(b), were absent along the OVB stockpile located in the southwestern end of the permit area. CORRECTIVE ACTION: Within 30 days of the signature date of this report, by April 15, 2005, ensure that all boundaries of the affected land are delineated in accordance with Rule 3.1.12(2)(b). 2. The permit area contains coal related equipment, which is not addressed by the reclamation plan or financial warranty. Reclamation liabilityforthese coal related items appears to have been assumed by Four Corners Materials through the submittal and approval of Amendment 2. Pursuant to Construction Materials Rule 1.1(3), 1.1(41), 4.2.1 and 6.4.5(2), the equipment must be addressed by the reclamation plan and financial warranty. Therefore, a revision to the permit and amount of financial warranty is necessary to address reclamation of these items. Such revision shall address removal of all equipment and appropriate handling of the petroleum contaminated soils, as well as standard reclamation issues. Such revision shall contain a new Exhibit L, Reclamation Costs, addressing each of the items in accordance with Rule 6.4.12. Alternatively, should Four Corners Materials desire to not assume reclamation liability for these coal related items, please submit a release request, in accordance with Construction Materials Rule 4.17, for the lands containing these coal related items. CORRECTIVE ACTION: Within 30 days of the signature date of this report, by April 15, 2005, submit either a revision to the permit to address reclamation tasks and reclamation cost associated with the coal related equipment located with the Ewing Mesa permit boundary, or a release request for the lands containing these coal related items, in accordance with Rule 4.17. CORRECTION DATE April 15. 2005 PB or PV: PB TOPIC(S): SM April 15. 2005 PB or PV: PB TOPIC(S): FN RS,_, (end of report)