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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1989-ndd <br />INSPECTION DATE: 94-in/in INSPECTORS INITIALS: RK- <br />OBSERVATIONS <br />The Division conducted a monitoring inspection of the site at the request of the operator <br />while in the area conducting other inspections. Mr. Jerry Johnston the operator contacted <br />the Division and requested to meet the earliest the Division was in the area. <br />Jerry stated that as part of a 35 acre parcel land sell which will include the permit <br />area, he wanted to know the process to transfer the permit if the lad sale was <br />successful. <br />Present during the site inspection was Mr. Chris Baker, who is considering buying the <br />parcel and transferring the permit. The Division explained to Mr. Baker the process and <br />provided him with a succession of permit application form, and a verity of Financial <br />Warranty Forms. <br />After the explanation, the site was inspected to verify if additional warranty will be <br />needed in the event the sale was completed. <br />Pit area was as described in 2005, not much additional mining had taken place. Mr. Baker <br />had on site a few mining equipment for sale, it appears he was operating the site under <br />Mr. Johnston's. Permit. A front end loader was parked along the west side of the pit <br />area. The total affected acres did not change from what was observed in 2005. The total <br />permitted acres for the site is 7 acres, of which, 4 acres appeared to have been <br />disturbed in one form or another. A small freshly dug material was noted east of the <br />front end loader. <br />Berms around the perimeter of the pit were found to be in good repair. As noted in the <br />last inspection along the south eastern part of the pit area, there is still some <br />captured water that appeared to be fed from a perched zone in the fractured granite. <br />During the last inspection it was assumed to be as a result of precipitation and operator <br />was notified to verify or provide proof that he has the legal right to capture and detain <br />what appeared to be GW. At that time Mr. Johnston had stated even if it was GW, he had <br />adequate water rights for the evaporative loss from this pond. To date the Division had <br />not received either a water supply subtitle plan or and ground water augmentation plan <br />from the State Engineer. The current warranty of $7500.00 is adequate to cover the <br />current disturbance. However if the disturbance is significantly increased, under the <br />current operator, the Division will need to be notified in writing so an inspection could <br />be conducted to verify adequacy of reclamation warranty. <br />At this time the Division requests the operator provide the requested proof from the <br />State Engineer, by the due date or sooner. <br />cc: r CE <br />I & E Contact Address <br />NAME: MR JERRY JOHNSTON <br />OPERATOR: SAME AS ABOVE - <br />STREET: P.O.BOX 99 <br />CITY/STATE/ZIP: DIVIDE rni nRAn(? Rnfil4 <br />r BL <br />F FS, <br />r HW <br />F HMWMD (CH) <br />r <br />r SE <br />F WQCD (CH) <br />F OTHER