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OBSERVATIONS <br />PERMIT #: M -1977 -307 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: September 14, 2011 <br />This inspection is part of the normal inspection schedule for Designated Mining Operations by the Colorado <br />Division of Reclamation, Mining, and Safety (Division). The CM -25 is a 110d permit, located on Club Mesa in <br />Western Montrose County. Glen Williams, Cotter's representative, accompanied the inspector on site. <br />The CM -25 Mine is a fully reclaimed mine site. The mine identification sign and affected area boundary <br />markers are not sloweAtet considered an issue. <br />The access road into the site crosses reclaimed areas associated with Umteco's Club Mesa Borrow Area. No <br />erosion or sedimentation issues are noted. Revegetation is native grasses. The road is not required to be fully <br />reclaimed. <br />The waste piles are sloped at 2:1 or better on the permit edge. The slopes are noted as being very stable with <br />no erosion or sedimentation issues observed. The largest part of the disturbance is the staging / work area <br />which is fully re- vegetated and is equal to or better than the surrounding area. Density and diversity of <br />vegetation is very good. Four winged and rabbit brushes are predominant with native grasses and minor <br />shrubs filling in. <br />The location of the portal is not identifiable. Site knowledge helped identify the area of the backfill which <br />shows no signs of subsidence or settling. <br />Overall the site is releasable. The Division is recommending to Cotter that it seek release of the permit based <br />on several factors. First the site meets the reclamation standards presently in place. Pending Environmental <br />Protect Plans (EPP) for all permitted uranium sites might create unnecessary additional permitting <br />requirements and costs. Secondly, the permit is out of date and would require an entire permit update not <br />just an EPP. A new permit later if reopening was feasible would be up to date and meet current standards. <br />Finally, the Division is reviewing the intermittent status issue for all mining permits. It is probable that a shift <br />in the status of this permit could create conditions where Cotter will have to either reactivate the mine or seek <br />release anyway. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, <br />phone no. 970 - 241 -1117. <br />Inspection Contact Address <br />Glen Williams <br />Cotter Corporation <br />P.O. Box 700 <br />Nucla, CO 81424 <br />Page 2 of 2 <br />