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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-2008-027 <br />INSPECTION DATE: 6/1 1 /2008 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS THM <br />This inspection was a pre-operational inspection of the Teepee Park Ranch Shale Borrow Pit construction materials <br />mine site for the 1 l Oc Permit application. <br />The required posting of the notice of pending application for a reclamation permit was in place. <br />The permit boundary markers were not in place at the time of the inspection. <br />No permanent man made structures were located on site. <br />No exposed ground water was observed and none is expected to be encountered due to the location of the site. <br />There are no significant surface water drainages present on the site. <br />There is a thin layer of topsoil present at the site that will need to be salvaged and stockpiled. The layer of topsoil is <br />thin and mixed with some rock therefore will be difficult to salvage. Some screening of the topsoil maybe necessary <br />to separate topsoil from rocks present at the site. <br />The vegetation on the site is diverse and consists of a variety of mountain shrubs, and a variety of alpine grasses. <br />Vegetation is scarce within the permit area due to prior disturbance at the site. <br />Due to the steepness and proximity to the Teepee Park Ranch road, the Division will require a Geotechnical Stability <br />Exhibit be completed at the site due to the potential for hazards related to mining on steep slopes. The specific <br />concern is potential damage to off site facilities and vehicles traveling on the road. Please refer to rule 6.5 (3). <br />A soil borrow pit was observed to the southwest of the permit area outside of the permit boundary. The pit was used <br />by the previous land owner and is not related to the Teepee Park Ranch Shale Borrow Pit. This is noted as a tool for <br />monitoring during future inspections. <br />Photos that show the conditions observed during the inspection are included at the end of this report. <br />No problems or violations were noted or observed during the June 11, 2008 inspection. <br />Responses to this inspection report should be directed to Travis Marshall at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South 3`d Street, Room 301, Grand Junction, Colorado 81501, phone no. <br />970.623.5596. <br />I & E Contact Address cc: <br /> ? CE: MVR Resources <br />NAME: Scott Hall ? BL <br />OPERATOR: Black Diamond Minerals, LLC ? FS <br />STREET: 1600 Stout Street, Suite 1350 ? HW <br />CITY/STATE/ZIP: Denver, CO 80202 ? HMWMD (CH)