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January 7, 2014 C- 1981 - 022 /Elk Creek Mine BFB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />R - Air Resource Protection <br />R - Roads <br />N - Availability of Records <br />N - Reclamation Success <br />N - Backfill & Grading <br />N - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />R - Explosives <br />N - Slides and Other Damage <br />N - Fish & Wildlife <br />N - Support Facilities On -site <br />R - Hydrologic Balance <br />R - Signs and Markers <br />N - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On -site <br />N - Other <br />N - Special Categories Of Mining <br />R - Processing Waste <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection of the Elk Creek Mine conducted by Brock Bowles of the Colorado Division of <br />Reclamation, Mining & Safety. Jim Kiger of Oxbow Mining, LLC ( OMLLC) was present for the inspection. The <br />weather was overcast and cold. The ground was frozen with patchy snow. Coal was not being mined at the time <br />of this inspection. OMLLC continues to research its options for replacing its longwall miner. The timeline for <br />when OMLLC will resume normal mining operations is unknown. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />The coal stockpile was at approximately half capacity. Coal was not being stacked and bulldozers were <br />not moving coal around the pile. There were no signs of fugitive dust on site or off. <br />EXPLOSIVES — Rule 4.08 ❑ Distance Prohibitions 4.08.4; Warnings 4.08.4; Control of Adverse Effects 4.08.4: <br />The area around the explosive lockers was free and clear of vegetation and debris. Mr. Kiger said the <br />explosives in the lockers had been removed and returned to the suppliers. <br />HYDROLOGIC BALANCE - Rule 4.05 ❑ Drainage Control 4.05.1, 4.05.2, 4.05.3; 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 />Ponds B, D and East Yard all contained water but none were discharging (photo 1 & 2). Pond A was dry. <br />The ditch along the West Valley Haul Road was free and clear of debris and sediment traps were in place and <br />clean. The ditch D2 sediment traps above the DB culvert were cleaned. These traps were noted in the Nov. 6, <br />2013 inspection report as having an excessive amount of vegetation and needing cleaning. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 ❑ Drainage Control; Surface <br />Stabilization; Placement: <br />Coal waste has not been created because OMLLC is not presently mining coal. The coal waste pile was <br />inaccessible due to snow cover and the road not being plowed. <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 3 <br />