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PERMIT #: M-1977-305 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: July 28, 2010 <br />OBSERVATIONS <br />OBSERVATIONS <br />This inspection was conducted as part of the Colorado Division of Reclamation, Mining, and Safety normal monitoring <br />program. The CLP-21 Mine is a 112d-1 permitted uranium located in the Long Park Area in Montrose County. Glen <br />Williams, mine supervisor for Cotter Corporation, the permitee accompanied the inspector on site. <br />The CLP-21 Mine is a fully reclaimed mine site under the Department of Energy's Lease Tract Program. The mine was <br />reclaimed due to economic reasons and not ore reserve depletion. Should favorable market conditions evolve Cotter <br />could reactivate the mine once an approved Environmental Protection Plan amendment is approved. <br />The mine identification sign and affected area boundary markers are not in place. Because the site is fully reclaimed it is <br />more desirable not to have them in place. <br />The old CLP-21 portal is totally reclaimed with the portal sealed and backfilled and waste piles re-vegetated. No <br />evidence of portal closure subsidence or reopening is noted. Vegetation diversity and density are very good especially <br />with the south-southwest facing aspects of the waste piles. Saltbush, rabbit brush, Indian ricegrass, slender wheatgrass, <br />and many volunteer species are noted. Many shrubs and grasses are two to three feet in height. Very little bare spots <br />No erosion, sedimentation, or stormwater issues were observed. An exisiting natural drainage was reconfigured during <br />reclamation to divert precipitation away from the site. Recent rains clearly show the drainage is handling localized heavy <br />rains well and protecting the site as designed. <br />No noxious or problematic weeds were observed. No debris or trash is noted around the site. <br />This site currently meets all DRMS reclamation requirements. <br />The bond was recalculated on this site in 2005 with anticipation of the mine going back into full production. Economic <br />conditions changed shortly thereafter and that did not occur. DRMS records indicate DOE currently holds a $48,000.00 <br />bond and DRMS a cursory $100.00 bond. Based on total reclamation success the amounts held more than cover the <br />reclamation liability. If DOE has reduced the reclamation bond held for the CLP-21, Cotter will need to submit a bond <br />reduction request with DRMS so the records can be adjusted accordingly. <br />No issues or problems are noted at this time. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, and Safety, <br />Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. <br />Inspection Contact Address <br />Glen Williams <br />Cotter Corporation <br />P.O. Box 700 <br />Nucla, CO 81424 <br />Page 2 of 6