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Mrs. Gwen Fraser - 2 - April 21, 1992 COM, Inc. Any amendment to the current permit, M-83-141, must be signed by representatives of both COM, Inc. and Gold Hill Ventures. The co-permittees need to, first, address the possible violations and, then, jointly request changes in permit conditions. The Division will seek revocation of the current permit if violations are not corrected and civil penalties paid. The Division and COM, Inc. representatives reviewed the status of the 1 violation and 3 possible violations on the permit. Violation 1 -The Board issued Notice of Violation No. M-92-021 which found the co-permittees in violation of the permit for processing ore at the mill which is not owned by Gold Hill Ventures. COM, Inc. filed a request for reconsideration of the Notice of Violation with the Division on 4/13/92. The Division would consider an amendment to the current permit to include processing of Bueno Ore. A valid permit on the Bueno Mine would be neesssary prior to removal of any material from the site. Possible Violation 2 - COM, Inc. is moving toward compliance with the permitted water pumping and utilization plan. An amendment was filed with the Division on 4/13/92 which is signed by Gwen Fraser of COM, Inc., only which proposes to install the pump lines, pump station, and access hole to utilize water from Left Hand Creek. COM, Inc. proposes that the lines will be removed between the tailings pond and the Hazel A adit and between the mill and the Cash mine. Proof of application for water use permits are included in the amendment. The amendment must be signed by Mr. Steen of Gold Hill Ventures before the Division can process it. The Division's inspection report of 3/31/92 erroneously stated that the pipe from the tailings and to the hazel A adit had to be buried. The only part that must be buried is the part from the decant tubes to the junction box directly below the tailings embankment. Possible Violation 3 - The Division approved the Technical Revision which proposed the use of the extrusion welding method for patching rips and holes in the tailings impoundment liner. This is a variation of the method approved in the permit. Patching of the liner was set to begin on April 14, 1992 according to Mr. Tatman. Possible Vioiation 4 - According to Mr. Tatman, the spilled tailings outside the mill building and between the mill building and the tailings impoundment have been scooped up and placed in the tailings impoundment. The co-permittees will be submitting a plan which provides for a double wall pipe between the mill and the tailings impoundment to help prevent spills from pipe breaks. Measures taken in the mill building to prevent and contain tailings spills will be discussed on the upcoming Division inspection scheduled for 4(16/92.