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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-2003-024 <br />INSPECTION DATE: 7/23/09 INSPECTOR'S INITIALS: -ECS <br />OBSERVATIONS <br />This was a pre-operational inspection for a 110c to 112c conversion application conducted by Eric Scott of <br />DRMS for the Phillips County Ward Pit site. DRMS toured the site with Phillips County representative Randy <br />Schafer at approximately 1145. <br />The required site entrance postings and site boundary markers were present, and the mine appeared to be in <br />compliance at the time of the inspection. This mine appeared to be well run and maintained, although some <br />concurrent reclamation could be started on the west end of the operation or any other areas were mining is <br />complete. <br />The area of the proposed expansion will correspond with the existing north and south boundaries of the site and <br />simply move the east site boundary eastward by another approximately 560'. There were some survey markers <br />in place to mark the extent of the expansion for the site visit. This additional area is currently open cultivated <br />farmland with no structures within 200' of any proposed mining activities. Nothing was observed during this <br />inspection that would be an issue or concern for the proposed 110 to 112 expansion. <br />Several weeds that should be eliminated, such as thistle, were noted although the problem was not widespread. <br />Some head-cutting of the previous drainage on the west side of the pit (nearest the county road) was observed. <br />This head-cutting should be halted before it can progress any further and be a potential problem in the future. <br />I & E Contact Address <br />Randy Schafer <br />Phillips County Administrator <br />221 South Interocean Ave <br />Holyoke, CO 80734