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REASON FOR INSPECTION: <br />Surety Related <br />BOND CALCULATION TYPE: <br />Complete Bond <br />BOND AMOUNT:$178,250.00 (DRMS) <br />$1,764,254.00 (BLM) <br />DATE OF COMPLAINT: <br />NA <br />POST INSP. CONTACTS: <br />U.S.BLM <br />JOINT INSP. AGENCY: <br />None <br />WEATHER: <br />Windy <br />PE S S <br />' ICcNf1'TI7RE: <br />SIGNATURE DATE:/ <br />November 22, 2011 <br />MINE NAME: <br />Nahcolite Project <br />MINE/PROSP ID #: <br />M- 1983 -194 V <br />MINERAL: <br />Carbonates <br />COUNTY: <br />Rio Blanco <br />INSPECTION TYPE: <br />Monitoring <br />INSPECTOR(S): <br />Travis H. Marshall <br />INSP. DATE: <br />November 14, 2011 <br />INSP. TIME: <br />11:00 <br />OPERATOR: <br />Natural Soda, Inc. <br />OPERATOR REPRESENTATIVE: <br />Carl Meyer <br />TYPE OF OPERATION: <br />112d -3 - Designated Mining Operation <br />irHWI <br />COLORADO DIVISION OF RECLAMATION, MINING AND SXFETY✓ <br />MINERALS PROGRAM INSPECTION REPORT iq EMM <br />PHONE: (303) 866 -3567 <br />NOV 0 2011 <br />Division of Reclaalakon <br />The Division of Reclamation, Mining and Safety has conducted an inspection of thirdnininglg ll <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />GENERAL INSPECTION TOPICS <br />This List identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No problems <br />or possible violations were noted during the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials and /or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic - forming, as identified in the permit. <br />(AR) RECORDS <br />Y (FN) FINANCIAL WARRANTY Y (RD) ROADS Y <br />(HB) HYDROLOGIC BALANCE Y (BG) BACKFILL & GRADING- Y (EX) EXPLOSIVES NA <br />(PW) PROCESSING WASTE /TAILING - -- N (SF) PROCESSING FACILITIES Y (TS) TOPSOIL Y <br />(MP) GENL MINE PLAN COMPLIANCE- Y (FW) FISH & WILDLIFE Y (RV) REVEGETATION - - -- Y <br />(SM) SIGNS AND MARKERS Y (SP) STORM WATER MGT PLAN - - -- Y (SB) COMPLETE INSP - - -- Y <br />(ES) OVERBURDEN/DEV. WASTE NA (SC) EROSION /SEDIMENTATION - -- Y (RS) RECL PLAN /COMP -- Y <br />(AT) ACID OR TOXIC MATERIALS Y (OD) OFF -SITE DAMAGE Y (ST) STIPULATIONS NA <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page 1 of 4 <br />