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(Page 3) <br />MINE ID # OR PROSPECTING ID # M-2009-023 <br />INSPECTION DATE 5/15/09 <br />Army Corps of Engineers. <br />INSPECTOR'S INITIALS WHE <br />The Division last inspected the site on August 28, 2008 and identified an infestation of Russian <br />knapweed and Musk thistle on site. The Operator responded by employing weed control methods during <br />the fall season of 2008 and has scheduled another application of herbicide this season. During this May <br />15th inspection no Russian knapweed or Musk thistle were observed. The Operator appears to be <br />successfully eradicating these regulated noxious weeds from the permit area despite the fact that such <br />weeds are well established in surrounding areas. <br />As noted above, the Division has reviewed the cost of reclamation for the 112 operation at $90,746. <br />Please find enclosed 16 pages of summary, work sheets and data sheets utilized by the Division to <br />estimate the cost of reclamation. Therefore, the existing $168,072 financial warranty appears sufficient <br />to ensure the completion of reclamation. The Division had previously required $168,072 to include costs <br />associated with backfilling the pond as required by the previous reclamation plan. Since that time the <br />Operator has demonstrated that the pond is compliant with Colorado water laws governing injury to <br />existing water rights. Additionally, through the 112 application, the Operator has demonstrated that the <br />pond may remain as a permanent structure. Therefore, this current reclamation cost estimation, totaling <br />$90,746, does not include costs associated with backfilling the pond. <br />Please be aware that annual reports always require a map of current site conditions, regardless of <br />whether any disturbance has occurred during the report year. <br />Response to this inspection report should be directed to the Division's office in Durango at 691 County <br />Road 233, Suite A-2, Durango, CO 81301, to the attention of Wally Erickson, phone (970) 247-5469. <br />Please note the change of address for the Division's office in Durango. <br />Enclosure: Four photos; <br />Operator's response to objections to the 112 application received from Mr. Harry Goff <br />and Mr. Mathew J. Box, Chairman, Southern Ute Indian Tribe; and <br />CIRCES reclamation cost estimation totaling $90,746. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Craig Wickstrom <br />Skanska USA Civil West RMD <br />P.O. Box 1660 <br />Cortez. CO 81321 <br />cc: Steve Shuey, DRMS <br />? CE <br />? BL <br />? FS <br />? HW <br />? HMWMD (CH) <br />? SE <br />X Mr. Harry Goff <br />X Mr. Mathew l Box, Chairman, <br />Southern Ute Indian Tribe