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May 9, 2014 C- 1981 - 022 /Elk Creek Mine LDS <br />Bear Creek, Elk Creek and Hubbard Creek were all flowing. <br />Ponds A, B, C, D and E held water to varying levels, but were not discharging, despite the recent wet <br />weather. <br />OTHER (SPECIFY): <br />The site of the smoking open hole, apparently from the old Somerset mine, cited in earlier inspection <br />reports was inspected. There was no evidence of any more smoke. The hole had apparently been backfilled and <br />then capped with —6 cubic yards of concrete. The surface appeared sound with no obvious signs of gaps or cracks. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization; Placement: <br />Mine vehicles continued to be stored on the West Valley Coal Refuse Pile. <br />Coal waste had been deposited on the II West Coal Refuse Pile, but it had not be spread or compacted. <br />SUPPORT FACILITIES - Rule 4.04: <br />Mr Kiger explained the function of the water treatment plant. The plant serves the town of Somerset and <br />will remain in operation after the mine closes, although it is not yet clear who will operate it. <br />The Vessels Coal Gas facility burns methane captured from unmined fractured rock, and from the old <br />Sanborn Creek mine, to power three 1MW generators which supply electricity to a ski resort in Aspen. The facility <br />also contains a 16MW thermal oxidizer, which converts Methane to Carbon Dioxide under controlled conditions, <br />lowering the greenhouse gas potential of the emissions and generating credits for trade on the California Carbon <br />Market. Although the facility is not regulated by the Division, several other sites within the Elk Creek permit are <br />being considered by Vessels for additional facilities (these include the Sanborn Creek and Bear Creek fan sites). <br />DOCUMENTS RECEIVED <br />N/A <br />OTHER (SPECIFY) <br />N/A <br />Number of Partial Inspection this Fiscal Year: I I <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 3 of 9 <br />