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June 6, 2011 C- 1981 - 020 /Munger Canyon Mine MPB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />R - Roads <br />N - Availability of Records <br />N - Reclamation Success <br />N - Backfill & Grading <br />N - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />N - Explosives <br />N - Slides and Other Damage <br />N - Fish & Wildlife <br />N - Support Facilities On -site <br />R - Hydrologic Balance <br />R - Signs and Markers <br />N - Gen. Compliance With Mine Plan <br />R - Support Facilities Not On -site <br />R - Other <br />N - Special Categories Of Mining <br />N - Processing Waste <br />N - Topsoil <br />COMMENTS <br />INTRODUCTION: <br />This was a partial inspection of the Munger Canyon Mine conducted by Mike Boulay of the DRMS Grand <br />Junction Field Office on June 6, 2011. I was not accompanied by an operator representative during the inspection. <br />Weather conditions were clear and warm. Ground conditions were dry. There was no activity at the site during <br />the inspection. <br />The gate at the access road to the site off of Highway 139 was locked but the lock apparently has been changed to <br />a new lock by the surface owner of the land (4 11 Enterprises) at this access point. This is the only access into the <br />site. Corey Heaps with Rhino Energy LLC has been contacted and is looking in to resolving the access issue with <br />411 Enterprises. I was able to inspect only a portion of the site. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.053; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring <br />4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />East Salt Creek had a large amount of flow due to rapid snow melt runoff (see attached photograph). Munger <br />Creek was not inspected. The road into the mine site was dry and stable and appeared to be in good condition. <br />SIGNS AND MARKERS — Rule 4.02: <br />The Mine and Permit identification sign was properly displayed and maintained at the entrance to the permit area <br />from Highway 139. <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 2 of 5 <br />