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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1984-041 <br />INSPECTION DATE: 10/18/2007 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS THM <br />This inspection was conducted as a follow up to the Succession of Operator approval by the Colorado Division of <br />Reclamation, Mining and Safety. The Eagle-Gypsum Mine is a 112c permitted site located approximately 1.5 miles <br />north of Gypsum, Colorado. Steve Onorofskie of American Gypsum Company LLC and Steve Shuey with the <br />Colorado Division of Reclamation, Mining and Safety were present during the inspection. Also present were <br />representatives from the Town of Gypsum who were onsite for the Division's walk through of the Town of <br />Gypsum's proposed compost facility. <br />The proposed compost facility is located in the SE '/ of the NE '/ of section 32 within the permit boundary of the <br />Eagle-Gypsum Mine. The total area of the proposed site is 5.3 acres. The American Gypsum Company and the <br />Town of Gypsum are currently in the process of filing for a technical revision with the Division to allow for the <br />compost facility. <br />The mine identification sign was in place and in compliance with rule 3.1.12. The sign is posted on the gate located <br />at the main entrance to the mine. The permit boundary markers were present according to Steve Onorofskie. <br />Some of the mined slopes located off of County Road 51 near the west entrance of the mine have been reclaimed to <br />slopes near or at 2.5H:1 V. The permit requires slopes to be no steeper than 2.5H:1 V. The slopes have been re- <br />vegetated and have vegetation coverage that appeared to be at or better than undisturbed land adjacent to the <br />reclaimed slopes. Plant species observed within the re-vegetated area were a variety of wheat grasses and rabbit <br />brush. Estimated vegetative coverage was 40-60%. <br />The entire western region of the permit area appeared to be undergoing reclamation or having been fully reclaimed. <br />High walls ranging from 60ft to 80ft with 20ft wide terraces were observed. These high walls were reclaimed to <br />specifications approved in the reclamation plan. <br />The focus of mining appeared to be occurring in the northeast section of the permit area. Large stockpiles of <br />gypsum along with stockpiles of overburden and topsoil were observed to the southwest of the active mine floor. <br />Haul trucks, loaders and Rotomills were observed working the mine floor. <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the <br />approved reclamation plan, DRMS will update the reclamation cost estimate. The estimate will be forwarded to the <br />operator under separate cover. <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 October 18, 2007 inspection. <br />Responses to this inspection report should be directed to Travis Marshall at the Division of Reclamation, Mining <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone <br />no. 970-623-5596.