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October 15, 2010 C-1981-020/Munger Canyon Mine DTM <br />Inspection Topic Summary <br />NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br />Y - Air Resource Protection R - Roads <br />R - Availability of Records R - Reclamation Success <br />R - Backfill & Grading R - Revegetation <br />NA - Excess Spoil and Dev. Waste NA - Subsidence <br />NA - Explosives NA - Slides and Other Damage <br />Y - Fish & Wildlife Y - Support Facilities On-site <br />R - Hydrologic Balance Y -Signs and Markers <br />Y - Gen. Compliance With Mine Plan R - Support Facilities Not On-site <br />R - Other NA - Special Categories Of Mining <br />R - Processing Waste Y -Topsoil <br />COMMENTS <br />INTRODUCTION/GENERAL COMMENTS <br />This was a complete inspection of the Munger Canyon Mine conducted by Dan Mathews of the DRMS Grand <br />Junction Field Office on October 15, 2010. No operator representative accompanied during the inspection, <br />however I spoke with HR/Administrative Assistant April Shults and Safety Manager John Barton at the mine <br />office prior to the inspection, and checked in with a security guard at the office following completion of the <br />inspection. Weather conditions were clear and warm, ground conditions were dry; no recent precipitation at either <br />the mine site or the off-site reclaimed Loma loadout facility. <br />AVAILABILITY OF RECORDS - Rule 5.02.4(1): <br />The availability of records was checked at the mine office at Ipm. Required records were on file and available for <br />review; please refer to the DRMS Availability of Records checklist at the end of this inspection report. <br />BACKFILL and GRADING - Rule 4.14 <br />:!Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination <br />4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and <br />Gullies 4.14.6: <br />Reclaimed areas including the mine bench/portal area, reclaimed portal access road, and waste disposal area were <br />inspected. Reclaimed slopes and channels appeared to be stable, including the fan portal backfill site that was <br />repaired in September 2009. There are a few minor settling cracks on the portal bench slopes and upper segments <br />of the portal access road, but these appear to be healing over and do not appear to be indicative of slope instability. <br />Riprapped channels appear to have functioned very well with no erosion, and shrubs and grasses are becoming <br />established along the channels. There was no evidence of significant erosion on the backfilled slopes; the <br />combination of roughened soil surfaces and vegetative cover appears to have effectively controlled erosion and <br />sedimentation from the site. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 10