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PERMIT #: M-1983-011 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: October 14, 2010 <br />An open pit containing asbestos pipe was noted just east of the trees that are east of the permit area. It appeared that the <br />pipe was to be buried in this location. The operator stated that the pipe had been moved from a location within the <br />permitted area, just south of the shop area. Several additional, small areas of recent excavation activity were also noted in <br />this vicinity. DRMS inspectors were unable to determine the reason for these excavations during this inspection. Mr. <br />Blecha stated that may have been areas where sample material was removed. It should be noted that all mining activity is <br />to be contained within the approved affected area, and that sampling outside this area is prohibited without filing a Notice <br />of Intent to Conduct Prospecting Operations with DRMS. Some additional asbestos pipe was also noted just south of the <br />shop area. <br />A large quantity of various dilapidated vehicles and equipment, much of which is (nine-related and was relocated from the <br />permit area, as well as chemicals, and various other refuse was noted in the forest area northeast of the pit area. This area <br />consists of approximately 3-4 acres. Some of the chemicals noted were containers of used and unused motor oil, <br />transmission fluid, hydraulic fluid, Hyperfloc AE 852, and propylene glyclol. DRMS inspectors were unable to identify <br />other chemicals observed at the site during this inspection. Since adequate boundary markers were not in place during the <br />inspection, and DRMS does not have an adequate map showing the approved affected area for this site, the inspectors <br />were unable to determine what portion, if any, of this area falls within the approved affected area. Regardless, it was <br />evident that at least some, if not all, of the above stated refuse was located outside the approved affected area. This has <br />also been noted as a problem in this report for failure to protect areas outside of the affected land from damage, for failure <br />to protect the hydrologic balance, and for failure to dispose of refuse in a manner that controls unsightliness or deleterious <br />effects of such refuse. <br />Responses to this inspection report should be directed to Dustin Czapla at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South 3'd Street, Room 301, Grand Junction, Colorado 81501, phone number <br />(970) 243-6299. <br />GENERAL INSPECTION TOPICS <br />The following list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each <br />R) RECORDS --------- ------------------- ------- PB (FN) FINANCIAL WARRANTY-------- N (RD) ROADS------------------ Y <br />HYDROLOGIC BALANCE ------------- PB (BG) BACKFILL & GRADING ---------- N (EX) EXPLOSIVES--------- NA <br />PROCESSING WASTE/TAILING---- N (SF) PROCESSING FACILITIES------- Y (TS) TOPSOIL--------------- PB <br />P) GENL MINE PLAN COMPLIANCE- N (FW) FISH & WILDLIFE----------------- N (RV) REVEGETATION---- N <br />SIGNS AND MARKERS---------------- PB (SP) STORM WATER MGT PLAN---- N (SB) COMPLETE INSP---- N <br />OVERBURDEN/DEV. WASTE--------- NA (SC) EROSION/SEDIMENTATION--- N (RS) RECL PLAN/COMP--N <br />T) ACID OR TOXIC MATERIALS------- PB (OD) OFF-SITE DAMAGE----------------PV (ST) STIPULATIONS------- N <br />Y= Inspected and found in compliance/ N= Not inspected/ NA= Not appticabie to tors operation/ its = rromem cueu i rv = rossime v1wauoa cucu <br />Page 4 of 5