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OBSERVATIONS <br />PERMIT #: M -1977 -305 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: September 20, 2011 <br />This inspection is part of the normal inspection schedule for Designated Mining Operations by the Colorado Division of <br />Reclamation, Mining, and Safety (Division). The CLP -21 is a 112d permit, located on Long Park in Western Montrose <br />County. Glen Williams, Cotter's representative, accompanied the inspector on site. <br />The CLP -21 is a fully reclaimed mine site. The mine identification sign and affected area boundary markers <br />are not considered an issue. <br />The access road into the site is a two tract that leads into the reclaimed area. No erosion or sedimentation issues are <br />noted. Revegetation is native grasses. The road is not required to be fully reclaimed. <br />The waste piles are sloped at 2:1 or better. The piles have been pocked which has resulted in micro - environments for <br />vegetation and is very good for sedimentation and erosion control. The slopes are noted as being very stable with no <br />erosion or sedimentation issues observed. Revegetation of the slopes is equal to or better than the surrounding area. <br />Density and diversity of vegetation is very good. Four winged and rabbit brushes are predominant with native grasses <br />and minor shrubs filling in. Given the southwesterly aspect revegetation is excellent. <br />The location of the portal is not identifiable. Site knowledge helped identify the area of the backfill which shows no <br />signs of subsidence or settling. <br />The office /shop and staging area are fully re- vegetated with similar levels of diversity and density noted above. <br />A gully runs through the permit area. It is noted as being stable and maintaining its course. No erosion or <br />sedimentation issues were observed. <br />Overall the site is releasable. The Division is recommending to Cotter that it seek release of the permit based on several <br />factors. First the site meets the reclamation standards presently in place. Pending Environmental Protect Plans (EPP) <br />for all permitted uranium sites might create unnecessary additional permitting requirements and costs. Secondly, the <br />permit is out of date and would require an entire permit•update not just an EPP. A new permit later if reopening was <br />feasible would be up to date and meet current standards. Finally, the Division is reviewing the intermittent status issue <br />for all mining permits. It is probable that a shift in the status of this permit could create conditions where Cotter will <br />have to either reactivate the mine or seek release anyway. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, and Safety, <br />Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, 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 />