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OBSERVATIONS <br />PERMIT #: M -1978 -116 <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 SM -18 Mine is a 112d -1 permitted site located above the Uravan Mill <br />site, east of Highway 141, in Montrose County. Glen Williams, Cotter's representative, accompanied the inspector on <br />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. <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 at the entrance to the site on County Road U17. Permit boundaries were observed as t- posts. The permit <br />has two distinct areas. The north section is the original permit area. It is fully reclaimed and was not inspected on this <br />trip as it was inspected in 2010. The second section is the southern area which is the Wright Group Portal Area. Mining <br />occurred in this area in 2005 and is the focus of this inspection. <br />The county road cuts the permit area in two. On the west side is the portal and support area. A compressor house, <br />office trailer, and a supply trailer are located in this section. Also observed was an empty fuel tank with secondary <br />containment. Earthen berms and grading direct storm water run -off to a retention basin north of the office trailer. The <br />retention pond was damp but not holding water at this time. Minor riling on the interior road and work area was <br />observed. Sedimentation was either fanned out in the area or captured in the retention basin. A secondary berm <br />prohibited storm water from flowing down the portal access ramp to the portal. This road also showed some minor <br />riling. Sedimentation and water are being directed to a retention basin at the entrance to the portal. The portal is <br />secured by a steel doors and locked. <br />On the east side is the recently established waste dump and ore stockpile area. The waste dumps are stable with some <br />volunteer vegetation on the top. Part of a 2005 amendment was a storm water control system the prevent run -on to <br />the area and contain run -off. The run -on diversion is a collection ditch that captures precipitation and directs it away <br />from the ore stockpile area, then between the topsoil and waste piles. Previous inspections have brought about <br />modifications to the original design that include additional stone armoring at critical points to repair and prevent cutting <br />and gulling. Observations note the diversion has done very well this season. Two stormwater retention basins are in <br />this area. The north retention basin captures storm run -off that is from the road and waste pile area. The basin was <br />modified in recent years for more holding capacity and isolation from the run -on system. The basin was damp and no <br />measureable water was observed. The second basin is smaller and located near the ore stockpile area. No ore has been <br />observed in this area since 2005. This small basin was dry. There was standing water in the swale that leads to the <br />basin. Flow patterns in the sands indicate the basin is collecting precipitation as designed. <br />As pointed out above the SM -18 will be required to submit an EPP soon. The Division recommends to Cotter that as part <br />of the EPP amendment it consider including additional areas from the Wright Group permit (M- 1979- 118HR) and <br />eliminate that permit. The move would consolidate efforts to establish the EPP and eliminate some historical confusion <br />concerning the latter permit. <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 />Page 2 of 3 <br />