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OBSERVATIONS <br />PERMIT #: M -1977 -306 <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 -9 Mine is a 112d -1 permit located on the Monogram Mesa and Bull <br />Canyon south of Paradox Valley, in Montrose County. Glen Williams, Cotter's representative, accompanied the <br />inspector on site. <br />An Environmental Protection Plan (EPP) 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 inspected due to the lack of recent activity and access restriction due to a cave in near the entrance to the <br />portal. <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 in Bull Canyon. Permit boundaries were observed as t- posts. The <br />site is split into two areas. The upper Monogram area includes a primary head frame, associated water treatment <br />facility, a secondary shaft that is a secondary escape way, and two fan shafts. The lower Bull Canyon area includes the <br />main portal, maintenance shop, and waste dumps. <br />On the upper Monogram area the fans were noted as running. The water treatment plant is now unusable do to its age <br />and condition. Both CDPHE and the Division noted issues with the pond liners and required the ponds be shut down. <br />Currently there is s small amount of water in the ponds from precipitation not pumping. The sediments and precipitate <br />will become an issue for disposal under the EPP. The main shaft was noted as being secured. No erosional or <br />sedimentation issues were noted in this area. <br />In the Bull Canyon area there is a maintenance / mine dry steel building located near the portal. An underground loader <br />was observed parked next to the building. The waste dump has slopes that are 2:1 or natural angle of repose. Natural <br />vegetation is coming in on the slopes. As in other areas sagebrush, rabbit brush, and some four - winged saltbush were <br />observed as well as native grasses. <br />Some stormwater control work has been done around the toe of the dumps and at the portal area. The primary goal is <br />to direct stormwater run -off to containment areas per the required CDPHE permit. The structures appear to be working <br />correctly. However, the size and construction details were not reviewed by the Division as part of the reclamation <br />permit. Under normal circumstances a Technical Revision would be required to ensure the structures meet the <br />specifications required for a DMO. Since an EPP is required, the design and construction details will be reviewed when <br />submitted. <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 />Glenn Williams <br />Cotter Corporation <br />P.O. Box 700 <br />Nucla, CO 81424 <br />Page 2 of 2 <br />