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PERMIT #: M- 2007 -031 <br />INSPECTOR'S INITIALS: TC1 <br />INSPECTION DATE: September 26, 2012 <br />OBSERVATIONS <br />This was a joint monitoring inspection conducted with the Bureau of Land Management (BLM). The Operator, <br />Foster Scott was present for the inspection. Amy Titterington, representing the BLM was also present for the <br />inspection. This site is located on the northeast edge of Cripple Creek, CO near the intersection of Galena Ave. <br />and Carbonate St. This is a small 110(2) operation. <br />Inspection: <br />Permit Boundary: A permit sign was visible from the entrance to the site (see Photo 1). Boundary markers <br />were present in the form of barbed wire fences (Photos 2 and 3). <br />Pit & Permit Area: There are two settling ponds on site in the path of the natural gulch. Each was impounding <br />water at the time of this inspection. Permit records and previous inspection reports indicate the water used for <br />processing is purchased by the Operator and trucked to the site. Both ponds had several feet of freeboard <br />(Photos 4 and 5). The original permit application indicates the lower settling pond existed prior to the current <br />operation. Mr. Scott indicated he would pump the remaining water out in the fall of 2012 for the winter. <br />There is a stockpile of ore material on the south end of the site (Photos 2 and 6) that Mr. Scott intends to <br />reprocess. The side slopes are steep (slightly flatter than 1 H:1 V), however, no signs of erosion were observed <br />and some vegetation is established. <br />No improperly stored containers were observed. <br />Of concern is the access road cut through the site (Photos 7 and 8). The nearly vertical walls are over 10 feet <br />high and exhibiting signs of erosion. Mr. Scott stated he would regrade the road in 2013 and leave the slopes at <br />1H:1 V. There is also some sloughing occurring on the north end of the site where the barbed wire fence T -posts <br />are no longer anchored in the earth (see Photo 9). This area should be fixed before it becomes a problem. <br />Equipment observed on site included a large trommel, portable generator (Photo 10), and a wheel loader (Photo <br />1). <br />Disturbance Area: <br />Using satellite images (Google Earth), the disturbed area was estimated to be approximately 1.5 acres. This <br />does not include the aforementioned pre- existing holding pond (estimated to be approximately 0. 12 acres). <br />Adjacent Lands: No impacts were observed to adjacent properties. However, without attention to some <br />potential slope stability issues, this could change. <br />Current Stipulations: <br />None. <br />Records: <br />• The previous inspection was conducted 6/15/2010. One problem was cited involving improper storage <br />of several 5 gallon containers and over steep highwalls in the road cut. <br />• The improper storage issue was resolved <br />• The over steep highwall was not and is cited as a problem in this report. <br />• The Operator is current with annual fees and reports through July 2012. <br />Page 2 of 5 <br />