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August 31, 2011 C- 1991- 078/Hamilton Mine MLT <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected <br />V= Violation Issued NA =Not Applicable <br />Y - Air Resource Protection <br />R - Availability of Records <br />NA - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />NA - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />R - Other <br />NA - Processing Waste <br />R= Comments Noted <br />Y -Roads <br />Y - Reclamation Success <br />R - Revegetation <br />NA - Subsidence <br />NA - Slides and Other Damage <br />NA - Support Facilities On -site <br />Y - Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a Complete Inspection of the Hamilton Mine, conducted by Marcia Talvitie of the <br />DRMS. The inspection commenced with a check of the mine permit records at 11:10 a.m. on <br />August 31, 2011. Weather conditions were clear, hot and breezy during the inspection of the <br />mine site. <br />PERMITTING UPDATE <br />• Permit Renewal No. 4 (RN -04) is the only currently active permitting action. The operator's <br />Public Notice of RN -04 appeared in the San Miguel Basin Forum on July 21, and August 4, <br />11, 18 and 25, 2011. The public comment period will run for 30 days following the last <br />publication, coming to a close on September 26, 2011. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(l): <br />• Mine Permit records were available for review at the nearby Broad Canyon Landfill office. <br />A completed DRMS Availability of Records form is attached to this report. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures <br />4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; <br />Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments <br />4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />• The ground surface was dry throughout the permit area. It did not appear that this region has <br />received much moisture in recent weeks. <br />• Pond B was completely dry. Pond slopes appear stable, with no erosions problems noted. <br />• The bottom of Pond B (Photo 1) is covered with annual weeds, including kochia, sunflower, <br />and prickly lettuce; and foxtail barley. A few tamarisk plants have appeared. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 1 Page 2 of 7 <br />