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(Page 4) <br />MINE ID # OR PROSPECTING ID #: M-1977-446 <br />INSPECTION DATE: 03.419.409 INSPECTOR, S INITIALS: KAP <br />The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified <br />during this inspection. The problems should be corrected by the dates given, or they will become possible <br />violations. The possible violations should be corrected by the dates given to reduce their severity when considered <br />by the Mined Land Reclamation Board. The inspector noted on the previous page should be notified of all <br />corrective actions taken. <br />PROBLEMS/POSSIBLE VIOLATIONS <br />AND <br />CORRECTIVE ACTIONS <br />2. <br />During the file review conducted as part of the inspection it was discovered that the <br />operator is not in compliance with the Office of the State Engineer for the presence of <br />exposed groundwater in the ponds. This is a problem related to 34-32.5-116(4) (h) of the <br />Colorado Revised Statutes and Rule 3.1.6(l) of the Construction Materials Rules and <br />Regulations for failure to comply with applicable Colorado Water laws and regulations <br />governing injury to existing water rights and failure to minimize impacts to the hydrologic <br />balance; as well as a problem related to C R S 34-32.5-116 (4) (i) for failure to follow the <br />reclamation plan prescribed in the permit. <br />Corrective Action: Either fill the pit to at least two feet about the groundwater surface or <br />demonstrate that the operation is in compliance with the Offic-P of th Stat Fnaineer within <br />thirty (30) days of receipt of this inspection report If the pond is to remain onsite submit an <br />amendment to the application indicating a change in the post-mining land use also within <br />thirty (30) days of receipt of this inspection report <br />CORRECTION <br />DATE <br />06/ 15/09 <br />PB or PV: PB_ <br />TOPIC(S): HR <br />AR