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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2005-071 <br />INSPECTION DATE 7-15-2008 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS SSS <br />This inspection was conducted to perform the seismic vibration monitoring required by stipulation to the approval of <br />Permit No. M-2005-071. Ms. Sara Nation of PreSeisTek performed the monitoring during this inspection and also set up <br />a seismograph to monitor vibrations at this site from 8 am to 5 pm every day for the 30 day period following this <br />inspection. The site is minimally operational. Just enough prep has been conducted to allow the required machinery to <br />be installed and operate in a safe manner. The prep was accomplished with minimal ripping and excavation of rock. <br />This inspection began at 1000 hours. Ms Nation and Mr. Ed Benson were already on site and making preparations for <br />the testing and choosing a location where the 30 day testing could be performed. The seismograph for the 30 day test <br />was being assembled. During the remainder of the morning, this seismograph was being installed and initialized. Testing <br />was delayed due to electrical problems with the crusher/screen unit. The crusher/screen was repaired and seismic <br />testing began approximately 3pm. <br />Station No. 1 was chosen as close as possible to the crusher/screen units and was located to the side of and between <br />the primary and secondary crushers. The crusher loading ramp was immediately adjacent to the seismograph which was <br />set up on an exposed shale bedrock layer. The primary crusher is approximately 25 feet away. The secondary crusher <br />is approximately 30 feet away. The Case 621 D loader passes by the unit at a 3 foot distance. <br />Readings begin at approximately 1545 hrs. The loader passes a few times during the test to scoop up a hard shale <br />material and load it into the crusher unit. At 1554 hrs. the D9 passes at approximately 20 feet as it positions above the <br />crusher to begin ripping. At 1557 hrs. the D9 is ripping approximately 175 feet from the seismograph. The location is <br />N 38°55'758"; W 107°58'179". <br />Station No. 2 was chosen between the crusher screen unit and the dozing/ripping location. The site is a sandstone <br />bedrock located above and approximately 125' from the primary crusher. The D9 with a single shank ripping tooth is <br />ripping and dozing the material at distances ranging from 20 to 45 feet from the seismograph. The Case loader is <br />scooping up rock at an estimated distance of 45 feet. <br />Readings begin approximately 1606 hrs. At 1610 hrs. the D9 is pushing large broken rock past the seismograph at a <br />distance of 30 feet. At 1618 hrs. the D9 is pushing large broken shale material past the unit at a distance of 20 feet. At <br />1619 hrs the D9 is ripping bedrock shale at a distance of 45 feet with '/2 to % shank buried in the ground and the tracks <br />slipping a bit on the rock surface. The location is N 38055'747"; W 107°58'207". <br />Station No. 3 was located above the operations on exposed rock at the ridge top. The site is located approximately 600 <br />feet from the operating D9 and 750 feet from the operating crusher/screen unit. Readings began at 1636 hrs. and <br />ended at 1651 hrs. The location is N 38°55'693"; W 107°58'095". <br />Station No. 4 is located on a sandstone rock outcrop approximately 150 feet from the cliff face and 120 feet east of the <br />property corner marker. The location is between the cliff and the mine facilities area and is estimated to be <br />approximately 750 feet from the operating D9. Readings began at 1700 hrs. The location is N 38155'638"; W <br />107°58'142". There is a large drainage between the ridge where the operation is being conducted and the ridge where <br />the cliff is located. <br />Station No. 5 is located on a sandstone outcrop approximately 285 feet from the operating D9 and on the same ridge as <br />the operation, but between the cliffs and the operation. This site is approximately 135 feet beyond the location where <br />the seismograph is set up for recording vibrations over the next 30 days. The location of that 30-day seismograph is <br />approximately 150 feet from the D9 ripping/dozing location. <br />Readings began at 1716 hrs and ended at 1726 hrs while the D9 was conducting a combination of ripping and dozing <br />shale bedrock. The location is N 38°55'705"; W107°58'156". <br />Each time the seismograph was set for readings it was placed on competent rock and a sand bag was placed over it.