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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1984-168 <br />INSPECTION DATE: 7-30-08 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS GRM <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 Williams Fork Pit is a I I2c permit located southwest of <br />Craig, Colorado just of Highway 13. Forrest Luke, representative for Williams Fork Mining accompanied the <br />inspector on the inspection. <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 at the entrance to the site off Highway 13 where it enters the permit boundary. Permit boundaries <br />are marked by t-posts and geological features that are easily identifiable. <br />Work is being done in Areas 4, 5 and 6. A loader was observed feeding a crusher and loading trucks which were <br />headed off site. Stockpiled processed materials were noted in the central part of Area 6. Dewatering has dropped <br />water levels in the work area to only a few feet in catchment trenches on the pit floor. Otherwise the entire work <br />area is dry. Current excavation high walls are relatively minor at 8 to 10 feet and only observed in a few areas. <br />Otherwise most excavations perimeters are sloped to 2:1 or better. <br />Topsoil has been spread along the western edge of Area 4. Reseeding has not yet been initiated due to time of year <br />and higher temperatures. Some annual weeds were noted but no noxious species were observed in this area. The <br />proposed island noted in the reclamation plan was observed. Slopes appear to be 3:1 or better. Vegetation above the <br />exposed waterline at this time appear to be primarily cheat grass and weeds but the inspector was not sure if seeding <br />per the reclamation plan had been done or not. <br />Areas 1, 2 and 3 are very well vegetated. It is noted that sedges, wheatgrasses and ricegrass were doing very well. <br />The density and diversity of the vegetation is very good and equal to or better than non-disturbed areas. Some cheat <br />grass was noted on berms and bare spots on islands that may be choked out as other more desirable species spread. <br />Some Canadian thistle was noted. The operator has a regular weed control plan and the sites have already been <br />reported to their control contractor. <br />An approximate 500 gallon fuel tank was observed just outside the working area in Area 4. The tank was <br />surrounded by an earthen dike but the structure was not lined with plastic or some other impermeable liner. DRMS <br />spill and control policies require secondary containment for all petroleum and hazardous materials. Due to the fact <br />that this site is within a very shallow water table the secondary containment is of particular importance. The <br />permitee needs to place the tank in a suitable containment structure or remove it from the site. Since this is the first <br />time the issue has been observed or noted the inspector is classifying it as an issue of concern. The permitee is asked <br />to correct the matter and please send photo documentation to the inspector. Future inspections will review the <br />matter and if not corrected could lead to more severe corrective notice and actions. <br />The reclamation bond was reviewed as part of this inspection. The bond of $123,400.00 is deemed adequate for the <br />remaining reclamation required at the site. <br />Overall the site is clean and well maintained. No problems or possible violations are noted. The inspector notes a <br />secondary containment issue that needs to be addressed by the permitee.