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PERMIT #: M-1984-014 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: January 24, 2011 <br />OBSERVATIONS <br />This inspection was conducted as part of the normal follow up process of compliance issues for the Colorado <br />Division of Reclamation, Mining, and Safety (DRMS). DRMS inspector Russ Means was accompanied by <br />Cotter Representative Glenn Williams. The JD-8 Mine is a 112d-1 Designated Mining Operation (DMO) with <br />intermittent status. <br />During the regular monitoring inspection of the JD-8 Mine conducted on September 23, 2010 the DRMS <br />inspector noted an outstand. issue from the last inspection. An inspection on April 2, 2008 noted a stock pile of <br />uranium ore located on the surface. Some of the original stockpile was removed but an estimated 300 to 500 <br />tons of ore remained on site. DRMS requested in 2008 a berm be built around the stockpile to protect it from <br />storm water and contain sediments from the pile erosion. DRMS noted the lack of the previously requested <br />berms as a problem during the September inspection and required Cotter to place the berms around the ore pile <br />by no later than November 17, 2010 as a temporary control. Those berms were in place as required and <br />observed on November 17th by the DRMS inspector. DRMS noted the stockpile itself as a problem and <br />required its removal from the surface within '90 days of the first inspection which was January 18, 2011. <br />The DRMS inspector visited the site on January 24, 2011. The ore pile in question has been removed along <br />with some of the under lying materials. The ore material has been placed back within the mine workings. The <br />inspector notes the mine is historically dry so interaction with groundwater is highly unlikely. Earthen <br />materials have been used to create berms within the original berms so that any sedimentation in the stockpile <br />foot print is contained to that specific location. <br />This inspection clears up the onsite problems observed in the September inspection. Cotter Corporation is <br />working on gathering the necessary information to submit an Environmental Protection Plan amendment <br />pursuant to the timeline established in Rule 7.2.3 (2). The EPP must be submitted within 180 days of the <br />October 21, 2010 notice letter, which is April 19, 2011. <br />If you need additional information please contact me at the Division of Reclamation, Mining and Safety, Grand <br />Junction Field Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado 81501, or by telephone no. <br />970.241.1117. <br />Inspection Contact Address <br />Glenn Williams <br />Cotter Corporation <br />P.O. Box 700 <br />Nucla, CO 81424 <br />CC: Ed Cotter, Department of Energy / Stroller, Grand Junction <br />Page 2 of 6 <br />