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December 8, 2011 C- 1981- 016/Hawk Nest E & W JRS <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection N - Roads <br />N - Availability of Records R - Reclamation Success <br />R - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife N - Support Facilities On -site <br />R - Hydrologic Balance N - Signs and Markers <br />N - Gen. Compliance With Mine Plan N - Support Facilities Not On -site <br />R - Other N - Special Categories Of Mining <br />N - Processing Waste N - Topsoil <br />COMMENTS <br />This was a complete inspection of Hawk's Nest Mine conducted by Jim Stark of the Colorado Division of <br />Reclamation, Mining and Safety. The permit for the Hawk's Nest Mine was revoked and the bond forfeited. The <br />weather was cool and sunny and the ground was partially covered with snow. <br />BACKFILL and GRADING — Rule 4.14 Contemporaneous Reclamation 4.14.1, Approximate Original <br />Contour 4.14.2; Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic <br />Materials 4.143; Stabilization of Rills and Gullies 4.14.6: <br />- The backfilled and regraded areas of the East Mine Portals, West Mine Bleeder Entries and West Mine Portals <br />were all basically stable at the time of the inspection. There is a small area of instability /slide that is approaching <br />the road at the East Mine Portals but it is not yet to the road and not causing a problem. Other than this area, there <br />was no other settling, cracking or slumping noted at any of the entry locations. <br />- The reclaimed East Mine and West Mine facilities areas, which are south of old Colorado Highway 133, along <br />the North Fork of the Gunnison River, were also stable. These areas did not show any signs of instability, settling, <br />slumping or cracking. <br />HYDROLOGIC BALANCE - Rule 4.05 Drainage Control 4.05.1, 4.05.2, 4.053; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2, Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />- The remaining sediment pond at the West Mine area was basically dry. The pond embankment was well <br />vegetated and appeared to be stable at the time of the inspection. No erosional problems were noted. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />- The site has good vegetative cover throughout most of the site. The vegetative cover appears to be well enough <br />established to control erosion from the site. No erosional features were noted on any of the reclaimed areas. <br />This completes the 8 December 2011 inspection report for the Hawk's Nest Mine. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 3 <br />