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(Page 5) MINE ID # OR PROSPECTING ID # M-97-089 'NSPECTION DATE 11/21/97 INSPECTOR'S INITIALS WHE The following problems (PBI 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 CORRECTION DATE 1. Excavations conducted by the Applicant, totalling less than 1,600 square feet, appear to be exempt from the Exploration Notice requirement, as defined by Rule 1.1113). However, Section 34-32.5-103(9) of the Act, does not specifically state the 1,600 square feet exclusion. Therefore, the uncertainty of the requirement for the Exploration Notice will be presented before the Colorado Mined Land Reclamation Board, for consideration, during the December 17-18, 1997 Board meeting, or the January 28-29, 1998 Board meeting. Applicant is encouraged to immediately submit petition to the Board for declaratory order, addressed under Rule 2.5, regarding the Notice of Intent requirement for exploration activities exempt by Rule 1.1(13), but not by Section 34-32.5-10319) of the Act. Rule 2.5.2(1) states that the petition must be submitted, at a minimum, 10 days prior to the Board meeting at which it is to be considered. Submittal deadline for the December 17-18, 1997 Board meeting is December 7, 1997. Submittal deadline for the January 28-29, 1998 Board meeting is January 18, 1998. CORRECTIVE ACTION: Applicant is encouraged to submit petition to the Board for declaratory order. If DMG does not receive petition for declaratory order by December 22, 1997, DMG may issue Reason To Believe That A Violation Exists for failing to file a Notice of Intent under the provisions of the Act and schedule the matter for a hearing before the Board during the January 28-29, 1997 Board meeting. 12/22/97 PB or PV PB TOPIC(S) MP _, _, RS CERTIFIED MAIL N0. Z 239 763 780 Return Receipt Requested (end of report)