02-06 North American Emerald Mine File Pt. 3

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NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
James D. Simons, PG, PE Land Quality Section Michael F. Easley, Governor
Director and State Geologist William G. Ross Jr., Secretary
October 4, 2006
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: North American Emerald Mine (Pe
Alexander County, N.C.
Dear Sir or Madam:
Attached is a copy of our report documenting an inspection recently conducted at a mine site for
which our records show you to be responsible. The inspection was performed under the
provisions of North Carolina General Statute 74-56 of the Mining Act of 1971.
Please review the report carefully and note any problems or deficiencies documented by the
inspector. Furthermore, please note any recommendations and/or specific corrective actions
required to correct any deficiencies that may be listed.
The responsibility for understanding and complying with the terms and conditions of your
mining permit and the Act lies with you.
Please do not hesitate to contact this office if you have any questions concerning the attached
report.
Your cooperation is appreciated.
Sincerely,
3-f)—e ss, lC —
Zahid S. Khan
Regional Engineer
Attachment
Cc: Floyd Williams, PG —Mining Specialist
ZSK/Im OCT 06 2008
LAND C t1�t m— 5ed Ilbty

North Carolina Department of Environment and Natural Resources,
Division of Land Resources, Land Quality Section
MINE INSPECTION REPORT
(PERMITTED MINE)
1. Mine Name: North American Emerald Mine 2. Mining Permit #: 02-06
3. Operator: North American Emerald Mines, Inc. 4. County: Alexander
5. Address: 531 Duncan Lane, Hiddenite NC 28636
6. Permit Expiration Date: 03/15/10 7. River Basin: Yadkin
S. Person(s) contacted at site: Jamie Hill, David Jerrell, and Carroll Williams
9. Was mine operating at time of inspection? ® yes ❑ No 10. Pictures? ❑ yes ® No
11. Date last inspected: 7/19/06 12. Has mining occurred since last inspection? ® Yes ❑ No
13. Is the mine in compliance with the Operating Conditions of the Permit? ❑ Yes ® No
If no, explain:
Operating Condition 414: Disturbance has exceeded the affected boundaries as shown on the
approved mine map. Additional grading was noted south of the rock storage area, behind
the office, and east toward the Sulphur Springs tract. An additional area of disturbances
was noted west of the existing mining area. A modification request has not been approved
by the Land Quality Section for this additional disturbance.
14. Is the mine in compliance with the Reclamation Conditions of the Permit? ® Yes ❑ No
If no, explain:
15. Did any of the above deficiencies result in offsite damage? ❑ Yes ® No
If yes, describe the type and severity of the damage:
16. Corrective measures needed and/or taken:
17. Other recommendations and comments:
Continue to work on obtaining the mine map modification.
18. Is the Annual Reclamation Report +/- map accurate? ❑ Yes ❑ No (Explain) ® Not Reviewed
19. Follow-up inspection needed? ❑ Yes ® No Proposed date:
20. Number of additional pages of Inspection Report: 21. Date report sent to operator: 10/4/06
Inspected by: Stephanie Graham 6c,
Others Present: Charles Gerstell
Telephone No: 704-663-1699
Date: 9/27/06
Copy to file Copy to operator Copy to Mining Specialist

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NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
Land Quality Section
James D. Simons, PG, PE
Director and State Geologist
November 22, 2006
Mr. David Jarrell
North American Mines
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: Blasting Complaint
North American Emerald Mine
Permit No. 02-06
Alexander County
Dear Mr. Jarrell:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
The review has been completed on the shot records you previously submitted for the
November 2 through 11, 2006 blasts at the North American Emerald Mine. Your company has
been found to be in compliance with the blasting conditions outlined in Mining Permit No. 02-06. 1
have already notified the complainants, Ms. Dorothy Watkins and Mr. Fred Walker, of ourfindings.
Thank you for your continued cooperation. If you should have any questions on the above,
please contact me at [phone].
cerely,
c / ,4—
Judith A. Wehner
Assistant State Mining Specialist
Land Quality Section
cc: Mr. Zahid Khan
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 •919-733-4574 / FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina 27604
An Equal Opportunity 1 Affirmative Action Employer — 50% Recycled 110% Post Consumer Paper

NCDENR
North Carolina Department of Environment and
Division of Land Resources
Land Quality Section
James D. Simons, PG, PE
Director and State Geologist
November 22, 2006
Natural Resources
Michael F. Easley, Governor'
William G. Ross Jr., Secretary
Ms. Dorothy Watkins Mr. Fred Walker
PO Box 276 173 Riverside Farm Road
Hiddenite, North Carolina 28636 Hiddenite, North Carolina 28636
RE: Blasting Complaint
North American Emerald Mine / Permit No. 02-06
Alexander County
Dear Ms. Watkins and Mr. Walker:
Our office has completed its review of North American Emerald Mines' blasting information,
including blast reports and seismograph recordings, related to the November through November
11, 2006 blasts conducted at its North American Emerald Mine. It was found that North American
Emerald Mines was in compliance with the blasting requirements of its mining permit during the
period in question.
All peak particle velocities, a measurement of ground vibration with units in inches per
second (ips), were well belowthe maximum allowable limits specified in North American Emerald
Mines' permit. More specifically, all recorded values were at or below 0.1 ips at a distance closer
than the closest offsite occupied structure (the location where compliance with the permit limits is
determined). According to extensive research by the U.S. Bureau of Mines and others, particle
velocities below 0.5 ips effectively eliminate the possibility of any structural damage.
All airblast readings, a measurement of the atmospheric pressurewave (overpressure) with
units in psi or dBL, were also below the maximum allowable limits specified in the mining permit
and well below the U. S. Bureau of Mines' recognized level of 164 dBL for prevention of glass
breakage. A key point worth noting is that glass breakage occurs at much lower levels of
overpressure than structural damage, such as cracking plaster.
Thank you for your interest and patience in this matter. Hopefully I have answered your
concerns adequately. If you should have any additional questions or concerns, please contact me
at [phone].
Sincerely, n
J dith A.
��'�U �e
Wehner
Assistant State Mining Specialist
Land Quality Section
cc: Mr. Zahid Khan
1612 Mail Service Center, Raleigh, North Carolina 27.699-1612 •919-733-4574 / FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina 27604
An Equal Opportunity 1 Affirmative Action Employer —50% Recycled 110% Post Consumer Paper

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LAND QUALITY SECTION BLASTING ANALYSIS WORKSHEET
(* = denotes fields where input data is needed)
Permit No.*: 02-06
Permittee*: North American Emerald\
Mine Name*: North American Emerald Mine
Blast Report No.*: 21
Peak Particle Velocity Check:
Date of Blast*: 11/02/06 Time of Blast*: 12:36
D = Distance to closest offsite occupied structure (ft): D* = 600.00
W = Maximum pounds of explosives per delay (pounds): W* = 9.00
SD = Scaled Distance: SD = D/W^0.5 SD = 200.00
V = Peak Particle Velocity (inches per second): V = 160 (SD)^-1.6 V = 0.03
(*max. limit in mining permit is: V = 1.0 ips)
Based on known distances from the blast to the seismograph and any additional location,
the expected vibration level can be estimated at the second location as follows:
V = Particle velocity measured by the seismograph (ips): V* = 0.05
DS = Distance from blast to seismograph (ft): DS* = 600.00
d = Distance from blast to second location (ft): d* = 600.00
PPV = Theoretical peak particle velocity at the closest offsite occupied structure (ips):
PPV = V(DS/d)^1.5 PPV= 0.0500
Airblast (Overpressure) Check:
P = Unconfined Airblast/Overpressure (psi): P = 82 (D/W^0.33)^-1.2 P = 0.090764
To convert (psi) to (dBL): (P/2.9 x 10^-9)log x 20 P = 149.91
AB = Confined Airblast/Overpressure (dBL): AB = P (dBL) - 35 dBL (for quarry situation) AB= 114.91
(*max. limit in mining permit is: AB = dBL)

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Explosives Column Check:
(this is a very approximate method based upon numerous assumptions;
specific densities may vary greatly depending upon the type and manufacturer
of the explosive products used in the shot; must consider each explosive used;
refer to Dupont Handbook for actual SPD, otherwise use the following:)
Assumptions (per Ireco):
If "straight" emulsion is used, use SPD (specific density) = 1.20
If a "blend/slurry" is used, use SPD (specific density) = 1.25
If "straight" anfo is used, use SPD (specific density) = 0.85
Ratio between explosives:
Total pounds of Explos. #1* = 450.00
Total pounds of Explos. #2* = N/A
Ratio between explosives = N/A
Average pounds of explosives used per hole (pounds)* = 8.50
Breakdown of average pounds of explosives per hole due to ratio:
Explosive #1 = 450.00
Explosive #2 = N/A
SPD = Specific densities for each explosive:
SPD for Explos. #1 * = 1.20
SPD for Explos. #2* = N/A
HD = Hole Diameter Used in Shot (inches): HD* = 2.50
LD = Loading Density (pounds per foot of column): LD = SPD(.34)(HD)^2
LD for Explos. #1 = 2.55
LD for Explos. #2 = N/A
Explosive column height for each explosive (feet):
Explos. #1 = 3.33
Explos. #2 = N/A
Total explos. column height = 3.33
Stemming height used in shot (feet)* = 4.00
Total height of explosive column(s) and stemming in the hole = 7.33
Total depth of hole denoted on the blasting report for the shot in question* = 8.00
Analysis Completed By: Date:

LAND QUALITY SECTION BLASTING ANALYSIS WORKSHEET
(* = denotes fields where input data is needed)
Permit No.*: 02-06
Permittee*: North American Emerald\
Mine Name*: North American Emerald Mine
Blast Report No.*: 22
Peak Particle Velocity Check:
Date of Blast*: 11/06/06 Time of Blast*: 12:36
D = Distance to closest offsite occupied structure (ft): D* = 600.00
W = Maximum pounds of explosives per delay (pounds): W* = 36.00
SD = Scaled Distance: SD = D/WA0.5 SD = 100.00
V = Peak Particle Velocity (inches per second): V = 160 (SD)A-1.6 V = 0.10
(*max. limit in mining permit is: V = 1.0 ips)
Based on known distances from the blast to the seismograph and any additional location,
the expected vibration level can be estimated at the second location as follows:
V = Particle velocity measured by the seismograph (ips): V* = 0.20
IDS = Distance from blast to seismograph (ft): DS* = 600.00
d = Distance from blast to second location (ft): d* = 600.00
PPV = Theoretical peak particle velocity at the closest offsite occupied structure (ips):
PPV = V(DS/d)A1.5 PPV= 0.2000
Airblast (Overpressure) Check:
P = Unconfined Airblast/Overpressure (psi): P = 82 (D/WA0.33)A-1.2 P = 0.157155
To convert (psi) to (dBL): (P/2.9 x 10A-9)log x 20 P = 154.68
AB = Confined Airblast/Overpressure (dBL): AB = P (dBL) - 35 dBL (for quarry situation) AB= 119.68
(*max. limit in mining permit is: AB = dBL)

Explosives Column Check:
(this is a very approximate method based upon numerous assumptions;
specific densities may vary greatly depending upon the type and manufacturer
of the explosive products used in the shot; must consider each explosive used;
refer to Dupont Handbook for actual SPD, otherwise use the following:)
Assumptions (per Ireco):
If "straight' emulsion is used, use SPD (specific density) = 1.20
If a "blend/slurry" is used, use SPD (specific density) = 1.25
If "straight' anfo is used, use SPD (specific density) = 0.85
Ratio between explosives:
Total pounds of Explos. #1* = 550.00
Total pounds of Explos. #2* = N/A
Ratio between explosives = N/A
Average pounds of explosives used per hole (pounds)* = 36.00
Breakdown of average pounds of explosives per hole due to ratio:
Explosive #1 = 550.00
Explosive #2 = N/A
SPD = Specific densities for each explosive:
SPD for Explos. #1* = 1.20
SPD for Explos. #2* = N/A
HD = Hole Diameter Used in Shot (inches): HD* = 2.75
LD = Loading Density (pounds per foot of column): LD = SPD(.34)(HD)A2
LD for Explos. #1 = 3.09
LD for Explos. #2 = N/A
Explosive column height for each explosive (feet):
Explos. #1 = 11.67
Explos. #2 = N/A
Total explos. column height= 11.67
Stemming height used in shot (feet)* = 4.00
Total height of explosive column(s) and stemming in the hole = 15.67
Total depth of hole denoted on the blasting report for the shot in question* = 28.00
Analysis Completed By: Date:

LAND QUALITY SECTION BLASTING ANALYSIS WORKSHEET
(* = denotes fields where input data is needed)
Permit No.*: 02-06
Permittee*: North American Emerald\
Mine Name*: North American Emerald Mine
Blast Report No.*: 23 Date of Blast*: 11/11/06 Time of Blast*: 11:04
Peak Particle Velocity Check:
D = Distance to closest offsite occupied structure (ft): D* = 600.00
W = Maximum pounds of explosives per delay (pounds): W* = 35.00
SD = Scaled Distance: SD = D/WA0.5 SD = 101.42
V = Peak Particle Velocity (inches per second): V = 160 (SD)A-1.6 V = 0.10
(*max. limit in mining permit is: V = 1.0 ips)
Based on known distances from the blast to the seismograph and any additional location,
the expected vibration level can be estimated at the second location as follows:
V = Particle velocity measured by the seismograph (ips): V* = 0.10
IDS = Distance from blast to seismograph (ft): DS* = 600.00
d = Distance from blast to second location (ft): d* = 600.00
PPV = Theoretical peak particle velocity at the closest offsite occupied structure (ips):
PPV = V(DS/d)A1.5 PPV= 0.1000
Airblast (Overpressure) Check:
P = Unconfined Airblast/Overpressure (psi): P = 82 (D/WA0.33)A-1.2 P = 0.155412
To convert (psi) to (dBL): (P/2.9 x 10A-9)log x 20 P = 154.58
AB = Confined Airblast/Overpressure (dBL): AB = P (dBL) - 35 dBL (for quarry situation) AB= 119.58
(*max. limit in mining permit is: AS = dBL)

Explosives Column Check:
(this is a very approximate method based upon numerous assumptions;
specific densities may vary greatly depending upon the type and manufacturer
of the explosive products used in the shot; must consider each explosive used;
refer to Dupont Handbook for actual SPD, otherwise use the following:)
Assumptions (per Ireco):
If "straight" emulsion is used, use SPD (specific density) = 1.20
If a "blend/slurry" is used, use SPD (specific density) = 1.25
If "straight" anfo is used, use SPD (specific density) = 0.85
Ratio between explosives:
Total pounds of Explos. #1* = 475.00
Total pounds of Explos. #2* = N/A
Ratio between explosives = N/A
Average pounds of explosives used per hole (pounds)* = 32.00
Breakdown of average pounds of explosives per hole due to ratio:
Explosive #1 = 475.00
Explosive #2 = N/A
SPD = Specific densities for each explosive:
SPD for Explos. #1 * = 1.20
SPD for Explos. #2* = N/A
HD = Hole Diameter Used in Shot (inches): HD* = 2.75
LD = Loading Density (pounds per foot of column): LD = SPD(.34)(HD)A2
LD for Explos. #1 = 3.09
LD for Explos. #2 = N/A
Explosive column height for each explosive (feet):
Explos. #1 = 10.37
Explos. #2 = N/A
Total explos. column height = 10.37
Stemming height used in shot (feet)* = 4.00
Total height of explosive column(s) and stemming in the hole = 14.37
Total depth of hole denoted on the blasting report for the shot in question* = 22.00
Analysis Completed By: Date:

North American Emerald Mines.
Blasting Report
Date: /% /Z. 140 (r Time:
Location: /&
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Wind Direction: it% Wind Velocity: mph
D �/CCct' Distance and Direction: ..il�,� G od_
Nearest Protected Structure
Material Blasted: cHole Diameter 2 /a Number of Holes:
Burden ' Spacing' Sz G Depth: 7 % Face Height: %
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Type of Stemming rri✓tiBlasting Mats Used: '190, Type of Mats: tY
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Total Weight of Explosives : i0 V
• Maximum Number of Holes/Delay (8 miliseconds): Q
• Maximum Weight of Explosives/Delay: ! 111
Initiation System Used Quantity Length Delayrrype
_ Electric
✓ Non -Electric ° _ /6 r Zr/_1d d P7J
Surface Delays Z ZJ p !�r f
Initiation Method Machine Used Number of Circuits
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Material Quantity Powder Factor
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North American Emerald Mines
Blasting Report
Blast# Z7 Date: 1G/46 Time: i2 J 1p
Location: N,4 C-
Weather Condition: Clear Cloudy Temperature 60 �
Wind Direction 15- Wind Velocity: mph
Nearest Protected Structure: 0 Fr,'oe- Distance and Direction: G oo � r/G
Material Blasted: c.Ji Hole Diameter: "L 7/y "/ Number of Holes: / G
Burden: (p' Spacing: S SC 6 Depth: Z 9 Face Height: z `'
Sub'drill: 'Z Backfill: .4)1— Length of Stemming: e/ Deck Stemming: `/
Type of Stemming: Blasting Mats Used: f Type of Mats: AO'
Explosives Type Quantity Manufacturer
Total Weight of Explosives :
* Maximum Number of Holes/Delay (8 miliseconds):
" Maximum Weight of Explosives/Delay:
Initiation System Used
Electric
V Non -Electric
✓ Surface Delays
Initiation Method
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NOU-17-2006 12:19P FROM:N R E M
NORTH AOERICAN EMERALD MINES, INC.
T0:1919715eeoi
631 Duncan Lane
Hiddenite, NC 28636
Phone:[phone]
Fax:[phone]
From. z Date:
Re: Total
Pages: 3
CC:
F.1
CONFIDENTIALITY NOTICE, The information contained in this facsimile message, and in any accompanying documents,
constitutes information which belongs to North American Emerald Mines, Inc, This information is intended only for the use of the
individual or entity names above. If you are not the intended recipient of this information, you are hereby notified that any
stribmion or the taking ofany action in rellance on this information, is strictly prohibited. Ifyou have
cation in error, please immediately notify us by telephone and return the original message above via the U.S.
CONFIDENTIAL
...................

NOV-17-2006 12:19P FROM:N R E M
828 635 7oeo TO"4197150001 P.2
North American Emerald Mines
Location: Nrj. -. M.
Weather Condition:
Clear % Cloudy
Temperature Zt o
Wind Direction: A
Wind Velocity:
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Nearest Protected Structure: op
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Distance and Direction: (0 00
Material Blasted: /Fic
Hole Diameter:
n
Z -79 Number of Holes:
Burden /p
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Spacing: S� G Depth: /(o —Zi>' Face Hefght: At Z 6
Subdrill 2 r Backfill: / S ' Length of Stemming:
S' Deck Stemming: r/�
Type of Stemming: G rvy.. /
Blasting Mats Used: -Q-
Type of Mats: Q'
Explosives Type
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Quantity
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Manufacturer
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Total Weight of Explosives :
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• Maximum Weight of Explosives/Delay: 7r f/✓
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Non -Electric
Surface Delays
Initiation Method
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Number of Circuits
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Seismograph Type: Calibration Date: Trigger Level:
Location Direction Distance Readings R T V dbf
Person Taking Reading:
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NCDENR
North Carolina Department of Environment and
Division of Land Resources
Land Quality Section
James D. Simons, PG, PE
Director and State Geologist November 7, 2006
Mr. David Jarrell
North American Emerald Mines
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: Blasting Complaint
North American Emerald Mine / Permit No. 02-06
Alexander County / Catawba River Basin
Dear Mr. Jarrell:
Natural Resources
Michael F. Easley, Governor
William G. Ross Jr., Secretary
This office recently received a complaint directed at blasting practices conducted at the
above referenced quarry. According to the complainants, Ms. Dorothy Watson and Mr. Fred
Walker, the vibrations produced from the blast at the North American Emerald Mine on
November 6, 2006 were excessively loud and the airblast could be felt.
As provided in the mining permit for this site, you are requested to provide this office
duplicate copies of all shot records related to the blasts conducted on November 6, 2006,
including any seismograph recordings made. Furthermore, please forward all shot information
for one production shoot conducted immediately before and one production shot after the blast
in question for this office's review.
It is recommended that you discuss this matter with Ms. Watkins and Mr. Walker. Their
addresses and telephone numbers are as follows:
Ms. Dorothy Watkins Mr. Fred Walker
PO Box 276 173 Riverside Farm Lane
Hiddenite, NC 28636 Hiddenites, NC 28636
[phone] [phone]
I look forward to receiving the requested information in the near future. Your continued
cooperation will be appreciated.
' cerely,
J dith A. Wehner
Assistant State Mining Specialist
Land Quality Section
cc: Mr. Zahid Khan
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 •919-733-4574 / FAX: [phone]
512 North Salisbury Street, Raleigh, North Carolina 27604
An Equal opportunity 1 Affirmative Action Employer— 50% Recycled 110% Post Consumer Paper

lasting Complaint (02-06) r
Subject: Blasting Complaint (02-06)
From: Charles Gerstell <[e-mail]>
Date: Mon, 06 Nov 2006 15:04:34 -0500
To: [e-mail]
Judy,
Attached are copies of two Mine Blasting Complaint Forms for a complaints receive
r an
by Mr. William Fredd6 at WelkeNorth Amedrican Emeiaid Minel Ms. Dorothy (02ns fblastor a h
06). Please let meuknow if you
November 6,
have any questions or comments.
Thanks,
C.T.
Charles Gerstell
North Carolina Dept. ofEn�ironment & Natural Resources
Div. of Land Resources - Land Quality Section
610 E. Center Ave., suite 301
e64tion/ df
Mooresville, NC 28115Fax: [phone]ias
Ph: [phone] � _ -- — -- ,I
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MINE BLASTING COMPLAINT FORM
NAME OF PERMITTEE: ,✓0�7� �+� 6n7c�� ttir�tA� wn rnit_L� T�
MINE NAME/MINING PERMIT NUMBER: ctiB RZs--��� AOW /oz-0�
COUNTY:
COMPLAINANT'S NAME: no
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PHONE#: 8z I- - -
APPROX. DISTANCE OF COMPLAINANT'S RESIDENCE TO MINE:
DATES OF SEVERE BLASTS: ov. 6 2.Wb
WEATHER CONDITIONS DURING THE BLASTS IN QUESTION, IF KNOWN:
NATURE OF COMPLAINT/COMMENTS: T )2- CAXD ju"
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INVESTIGATOR'S NAME:
DATE COMPLAINT RECEIVED: AL - o
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MINE BLASTING COMPLAINT FORM
NAME OF PERMITTEE: A,oe,-ra A,-�,r zz AA) r-.tir� Jz vtz.s , mac-.
MINE NAME/MINING PERMIT NUMBER:.yoa.ra Al.,rv_cA,v 4.me:aA� az& 0;4oz - CD( -
COUNTY: L(LF XA V,l F v
COMPLAINANT'S NAME: WYLL-TAM Hat i, wAuc.-w
ADDRESS: i1z F,m2A-i L,An E- tajooeAl:-- z8636
PHONE#: C_sz,;�-) b35 - G335
APPROX. DISTANCE OF COMPLAINANTS RESIDENCE TO MINE: > 3 400 fit'.
DATES OF SEVERE BLASTS:
WEATHER CONDITIONS DURING THE BLASTS IN QUESTION, IF KNOWN:
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NATURE OF COMPLAINT/COMMENTS: ,AS- WALALN-_2'5
TV-af.. Ala- WAIV-t:Q- ''Ai0 IA-V FtF-LT THV .
BLAST TOOY- PIAt_lC- AT M I. 3fl . M(l . t—^�s ALU x'z=k Z
-V-D, tins'--_ � Mii - WAl.V _�V-- tr= [l 1{ti 1i FJ�2 �7 IZOU(_S Fl.`IZNC� TH2n Uy �{ TP.az.�s
INVESTIGATOR'S NAME:
DATE COMPLAINT RECEIVED: i/ - Z -