2009-09-30_INSPECTION - M1981185

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(Page 5) MINE ID # OR PROSPECTING ID # M-1981-185 INSPECTION DATE 9/3/09 INSPECTOR'S INITIALS WHE The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. PROBLEMS/POSSIBLE VIOLATIONS AND CORRECTIVE ACTIONS CORRECTION DATE The Operator has constructed a new portal at Level 1, not addressed by the permit and thereby has failed to comply with permit conditions. 11 / 29 / 09 PB or PV: PV CORRECTIVE ACTION: Within 60 days of the signature date of this report, by TOPIC(S): MP November 29, 2009, file a modification to the permit, through either the Technical Revision -13a process, per Rule 1.9.1, or the Amendment process, per Rules 1.10(2) and (3), to fully describe all major components of the operation as required under Rule 6.3. The Division believes that by failing to update the permit, to incorporate the new portal prior to constructing the portal, the Operator has violated the conditions of his own permit. Pursuant to C.R.S. 34-32-124(1), the Division has scheduled the possible violation for consideration by the Colorado Mined Land Reclamation Board, to occur during the November 12 - 13, 2009 Board meeting. 2. The Division has reviewed the current cost of reclamation totaling $38,209. Therefore, the existing $10,881 financial warranty appears insufficient to ensure reclamation. 11 / 29 / 09 PB or PV: PB CORRECTIVE ACTION: Within 60 days of the signature date of this report, by TOPIC(S): FW November 29, 2009, increase the amount of financial warranty to an amount not less than $38,209, or complete portions of the reclamation plan to ensure the sufficiency of the existing $10,881 financial warranty. 3. The approved plan does not clarify that explosives will be utilized for mining purposes, and does not address the requirements of Rules 6.3.3(1)(o) and 6.5(4). 11 / 29 / 09 PB or PV: PB CORRECTIVE ACTION: Within 60 days of the signature date of this report, by TOPIC(S): EX November 29, 2009, file a modification to the permit, through either the Technical Revision process, per Rule 1.9.1, or the Amendment process, per Rules 1.10(2) and (3), which address the requirements of Rules 6.3.3(1)(o) and 6.5(4). 4. The Operator has constructed anew access road which is not identified in the permit and is not included within the boundaries of affected lands. 11 / 29 / 09 PB or PV: PV