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(Page 3) <br />MINE ID # OR PROSPECTING ID #: M-2001-085 <br />INSPECTION DATE: 04 Octoher 2010 INSPECTOR'S INITIALS: DR2_ <br />The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this <br />inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible <br />violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation <br />Board. The inspector noted on the previous page should be notified of all corrective actions taken. <br />PROBLEMS/POSSIBLE VIOLATIONS <br />AND <br />CORRECTIVE ACTIONS <br />CORRECTION DATE <br />1. Problem: The Operator has not provided the full financial warranty amount required under the 02/02 /11 <br />approval of Amendment AM-4. <br />PB or PV: PB <br />TOPIC(S): FN <br />Corrective Action: The Operator must provide the additional amount before work on Amendment <br />AM-4 starts or within 365 days of AM-4 approval (February 2, 2011). <br />2. Problem: The Operator is placing mined overburden outside of the permit area. This is a potential <br />violation of §34-32.5-116(4)(1) and (I) C.R.S. and Rules 3.1.5(3) and 3.1.6(3). Ground on which <br />spoil piles are placed is defined as Affected Land under §34-32.5-103(1) C.R.S., §34-32.5-103(13), <br />and Rules 1.1(3) and 1.1(27). <br />Corrective Action: Within 60 days from the date of this inspection report, the operator must file an <br />Amendment to enlarge the permitted area to include the ground on which the overburden is and will <br />be placed. This matter will be scheduled for a hearing before the Mined Land Reclamation Board for <br />12/ 21/10 <br />PB or PV: PV <br />TOPIC(S): MP <br />OD