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PERMIT #: M- 1981 -020 <br />INSPECTOR'S INITIALS: TC 1 <br />INSPECTION DATE: September 26, 2012 <br />OBSERVATIONS <br />This inspection was conducted as part of the regular monitoring program. The Operator was represented by <br />Bennie Thorson and Ina Finch, who were both present for the inspection. This is a 110c gypsum mine. <br />The Thorson Mine is located approximately 2 miles west of Phantom Canyon Road (Hwy 67), about 4 miles <br />north of US Hwy 50 between Penrose and Canon City, CO. <br />Inspection: <br />A permit sign was displayed at the site entrance (see Photo 1). Permit boundary markers consist of rods (see <br />Photo 2) and natural features as stated in the previous inspection report. The site was not active at the time of <br />inspection. A small amount of material has been stockpiled for reclamation (see Photos 3 and 4). Some <br />backfilling may be required for final reclamation. A small stockpile of gypsum was observed (see Photo 5). A <br />small crusher, fuel tank and stockpile of unprocessed material were also observed (see Photo 6). <br />Disturbed Area — Field Delineation: <br />This inspector used a Trimble Juno GPS receiver for field data collection. The disturbed area is outlined in red <br />on Figure 1 and estimated to encompass approximately 0.63 acres. <br />File Review: <br />• The total permitted area is 9.8 acres. <br />• The previous inspection was performed on November 7, 2007. No problems were noted. <br />• The mine permit application and previous inspection report indicate pre -law disturbance and that the <br />gypsum was exposed at the surface with very little to no vegetation. <br />• There is a $2,500 financial warranty (certificate of deposit) for the site. <br />• Annual fees and reports are up to date through 2013. <br />• The DRMS received a request for temporary cessation (TC) from the Operator on March 11, 2013. No <br />comments have been received to date and the request was presented to the Mined Land Reclamation <br />Board on May 15, 2013. <br />• The $2,500 bond is adequate for reclamation of the 0.63 acres currently disturbed. <br />Current Stipulations: <br />None. <br />Recommendations: <br />1. The Operator will be notified under separate cover regarding the status of the request for Temporary <br />Cessation. <br />2. When mining resumes, the Operator will need to complete reclamation in any currently disturbed area <br />prior to disturbing additional area or increase the bond accordingly. <br />3. The Operator will need to notify the DRMS within 30 days of resuming mining. <br />4. Annual fees and reports are still required during temporary cessation. <br />Page 2 of 4 , <br />