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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1977-306 <br />INSPECTION DATE: 4-2-08 INSPECTOR'S INITIALS GRM <br />~i <br />i <br />OBSERVATIONS <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining and Safety for permitted sites. The JD-9 is a regular 112 permitted site for an underground <br />uranium mining operation. Cotter Corporation holds the Department of Energy (DOE) Lease for the JD-9 Tract. <br />Glen Williams from Cotter and Dan Burns from the DOE accompanied the inspector on site. <br />i <br />i <br />Portal Area: <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. <br />The sign is located just off the County Road where the access road is gated below the permit boundary to the permit <br />area. Permit boundaries are marked by t-posts that are visible. <br />The mine isback instand-by status after reactivation and a short time in production. The inspector notes there is no <br />ore stockpiled on site at this time. The ore storage stockpile area is located on the top of the waste dump.ll Grading <br />of the ore storage area is such that there is zero release of stormwater from the area. <br />The inspector notes some equipment is being stored on site. No major leaks of fuels or oils were noted.~~ The fuel <br />storage tank is noted as being empty and all mine buildings are secure and in good repair. The portal is noted as <br />being secured by locked gate in good repair. <br />Stormwater controls for the permit area are grading and berms. The inspector notes that the grading has kept the <br />stormwater that falls on the dump area confined to that area. Stormwater from around the shop area is d~,irected to <br />bar ditches that parallel the access road. Since there is no activity on site there is no present concern for stormwater <br />from this area. However, when operations resume a sedimentation catchment of some kind will need to be <br />constructed to retain sedimentation. The inspector realizes that space in this area is limited and suggests that the <br />sedimentation structure may be better located close to the shop area as opposed to lower down. It is important to <br />note that prior to any reactivation the Division will require a Technical Revision that addresses a permit wide <br />stormwater control engineered to contain the 10 yr /24 hour event and must safely pass a 100 yr/24 hr event. This <br />plan can be reviewed and approved while the mine is on stand-by which will result in no delays when resumption of <br />production is contemplated. <br />Topsoil is very limited on the site. What little is there is used for berms along the uphill side of the permit area. <br />Some natural vegetation is helping prevent loss to wind or precipitation. ~, <br />Head Frame Area: <br />The head frame area is located on the mesa above the portal area. The head frame acts as a power drop for the mine, <br />emergency exit and water discharge to the treatment plant for the underground workings. There are tw;o fan pads <br />located in the general vicinity of the head frame. ', <br />Currently there is no water treatment going on as the pumps underground have been shut down. DOE and the <br />Division both noted that the liner for the precipitation ponds is showing their age. Although the integrity~~of the liner <br />appears to still be okay, the free board liner is showing signs of dry rot. Cotter has a new pad laid out but until the <br />DMO issue is resolved does not want to start work on it because of design criteria questions. <br />