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PERMIT #: M -1982 -121 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: October 12, 2011 <br />OBSERVATIONS <br />This inspection was conducted as part of the Division of Reclamation, Mining and Safety's <br />(Division) normal monitoring program. Peter Babin, Mike Mayers, and Justin Olin, representing <br />the Operator, were present during this inspection. Pauline Adams, with the BLM, was also <br />present during this inspection. Photographs are included at the end of this report in order to <br />illustrate some of the conditions observed during this inspection. <br />The Mid - Continent LST site is located approximately 1.25 miles north of Glenwood Springs and <br />accessed from Transfer Trail Road. The site is a 112c operation that includes a total of 32.78 <br />permitted acres. The Division currently holds a financial warranty amount of $41,140.00 for this <br />site. The Division has reviewed the reclamation costs for this site, in order to ensure the <br />financial warranty reflects the actual current cost of fulfilling the requirements of the <br />Reclamation Plan, and determined that the current financial warranty amount is insufficient. <br />The Operator will be notified under separate cover of a financial warranty increase. <br />Adequate mine identification signage was noted at the entrance to the site in accordance with <br />Rule 3.1.12(1). <br />The affected area was not marked by markers that were clearly visible and adequate to delineate <br />the affected area boundary in accordance with Rule 3.1.12(2). <br />The mill facility, approved through TR3, had been constructed and was operational during this <br />inspection. Fuel storage in this area had adequate secondary containment. <br />Mining at the site is progressing in a northerly direction. Three production benches, <br />(approximately 25 ft. high x 20 ft. wide x 200 ft. long) were noted above the process bench, <br />which is located just north and uphill from the mill bench. The process bench lies at the base of <br />a cut slope, beneath the production benches, which is approximately 50 feet high with an <br />approximate average slope of 1 H:1 V. Pursuant to the approved reclamation plan, this slope will <br />be required to be reclaimed at a 2H:1V slope. <br />No other problems or violations were noted during this inspection. <br />Responses to this inspection report should be directed to Dustin Czapla at the Division of <br />Reclamation, Mining and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, <br />Grand Junction, Colorado 81501, phone number (970) 243 -6299. <br />Page 2 of 3 <br />