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June 11, 2014 C- 1981 - 022 /Elk Creek Mine MLT <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />N - Availability of Records <br />N - Backfill & Grading <br />N - Excess Spoil and Dev. Waste <br />R - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />R - Other <br />R - Processing Waste <br />Y - Roads <br />N - Reclamation Success <br />R - Revegetation <br />N - Subsidence <br />Y - Slides and Other Damage <br />R - Support Facilities On -site <br />N - Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />A partial inspection of the Elk Creek Mine was conducted by Marcia Talvitie, of the Division, on the <br />morning of Wednesday, June 11, 2014. Jim Kiger was available to represent the operator, Oxbow <br />Mining, LLC, and escorted me throughout the inspection. Temperatures were cool, and skies were <br />overcast. <br />EXPLOSIVES — Rule 4.08 <br />Distance Prohibitions 4.08.4; Warnings 4.08.4; Control of Adverse Effects 4.08.4: <br />• No explosives are currently being stored within the permit area. The magazines are still located <br />immediately south of Pond D at the facilities in Elk Creek. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.053; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water <br />Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream <br />Buffer Zones 4.05.18: <br />• The permit area was generally dry. Elk Creek was flowing at a low rate into the culvert at the <br />northern end of the Elk Creek Facilities area. <br />• Ponds A and E were dry. Water that accumulates in Pond A has been pumped to Pond B. Ponds B <br />and D each held water, but the level was below that at which discharge will occur. <br />GENERAL MINE PLAN COMPLIANCE: <br />• The mine is continuing to sell its remaining stockpile of coal, with trains shipping out at a rate of <br />approximately one per week. They anticipate that the remaining stockpile (Photo 1) will be depleted <br />mid - summer 2014. <br />• The operator is currently pursuing a modification of the B -Seam mining lease with the BLM. <br />OTHER: <br />• Vessels Coal Gas, Inc. has tapped into both the Elk Creek and Sanborn Creek mine workings to <br />capture methane (Photo 2). <br />• At the Elk Creek facility, two of the three generators were running, as was the Oxidizer. <br />Number of Partial Inspection this Fiscal Year: 12 <br />Number of Complete Inspections this Fiscal Year: 4 Page 2 of 6 <br />