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OBSERVATIONS <br />PERMIT #: M -1977 -310 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: September 15, 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 JD -6 Mine is a 110d permit located on the south side of Paradox Valley, <br />east of County Road DD -19, in Montrose County. Glen Williams, Cotter's representative, accompanied the inspector on <br />site. <br />An Environmental Protection Plan submittal notification has been sent out for this site with specific dates for <br />compliance. Therefore this inspection is only noting current site conditions and immediate problems. The underground <br />was not visited due to the lack of any recent activity. <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. The <br />sign is located on the gate at the entrance to the site. Permit boundaries were observed as t- posts. <br />On the upper bench the portal is secured by a locked steel gate attached to steel sets. There is an office / mine dry <br />trailer, a compressor house, an empty propane tank, and an empty fuel tank with secondary containments located in <br />this area. A retaining wall / waste car dump was reconstructed . No erosion or sedimentation issues were observed in <br />this area. Stormwater is directed to a collection ditch along the access road. The ditch directs flows to the lower bench <br />retention basin. <br />On the lower bench drainage is directed to the retention basin. Recent abnormally high precipitation in the area has <br />tested the design here and elsewhere. Minor riling in the roadway was noted but no evidence of off -site damage was <br />observed. Mining activity at the site is documented as occurring in 2005. The mine actively produced uranium ore that <br />was shipped out. The area where ore was handled has a negative drainage design. Any precipitation in this area is <br />confined to that area. No evidence of stormwater or sedimentation excursions was observed. <br />The waste dump has slopes that are 2:1 or natural angle of repose. Berms contain any stormwater run -off to the top. <br />Some historical erosion is present, but the construction of the berms has significantly reduced the impacts. Stormwater <br />run -on is diverted through a constructed channel above the mine. <br />The topsoil pile is vegetated to prevent erosional losses. Natural vegetation is coming in. Sagebrush, rabbit brush, and <br />some four - winged saltbush were observed as well as native grasses. <br />No issues or problems are cited at this time. A review of the financial warranty will be undertaken when the EPP process <br />is completed. <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 />