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March 5, 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 />R - Availability of Records <br />N - Reclamation Success <br />R - 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 />R - Support Facilities Not On -site <br />N - Other <br />N - Special Categories Of Mining <br />N - Processing Waste <br />N - Topsoil <br />COMMENTS <br />This was a complete inspection of theElk Creek Mine conducted by Brock Bowles of the Colorado Division of <br />Reclamation Mining and Safety. Jim Kiger of Oxbow Mining, LLC was present for the inspection. The weather <br />was sunny and clear. The ground was muddy from melting snow. Elk Creek is not producing coal at this time and <br />continues to work with a reduced staff. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />There was coal on the stockpile and some smoke coming from the pile indicating a hotspot in the coal. <br />Bulldozers were not working the coal and coal was not being stacked. There were no signs of fugitive dust onsite <br />or off. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />All files were available for review at the OMLLC office. See attached availability of records checklist. <br />BACKFILL and GRADING — Rule 4.14 Contemporaneous Reclamation 4.14.1; Approximate Original Contour <br />4.14.2; Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials <br />4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />The new drill pad for the gas producing well approved in TR -75at the Sanborn Creek portal area is <br />currently producing gas. The pad and portal area appear to be stable. <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 detonation cap and explosive lockers was free and clear of debris and vegetation. <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 />Number of Partial Inspection this Fiscal Year: 9 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 5 <br />