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July 29, 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 />N - Roads <br />N - Availability of Records <br />R - Reclamation Success <br />N - Backfill & Grading <br />N - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />N - Explosives <br />N - Slides and Other Damage <br />N - Fish & Wildlife <br />N - Support Facilities On -site <br />R - Hydrologic Balance <br />N - Signs and Markers <br />R - Gen. Compliance With Mine Plan <br />N - 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 partial 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 mostly cloudy with occasional showers. The ground and vegetation was damp from recent rain showers. Elk <br />Creek is not producing coal at this time and continues to work with a reduced staff. Oxbow Mining, LLC applied <br />for a BLM lease modification to mine B -Seam coal, within the current permit boundary and below the current D- <br />Seam workings. BLM recently denied the application. Oxbow is uncertain at this time if they are going to re- <br />apply for the lease. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />The coal stockpile was very small. Jim Kiger estimated that there was one train load of coal left in the <br />pile. Coal was not being stacked nor were bulldozers working on the pile. There were no signs of fugitive dust on <br />site of off. The main facilities area was damp from rain showers and mine vehicles were not creating dust. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; <br />Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; <br />Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />On the light use road to Pad HGBMP, there was evidence of light erosion and sediment deposition going <br />into the vegetation in three places (photos I & 2). SAE controls need to be installed along the road. <br />There is some erosion deposition in the Northeast corner of upper Pad 16 -01. SAE controls need to be installed. <br />Ponds A (photo 3), B and D (photo 4) contained water but none were discharging. East Yard pond was dry. Elk <br />Creek was extremely low. Bear Creek was dry. The SAE bales along the main facilities haul road were in good <br />condition. <br />GENERAL MINE PLAN COMPLIANCE: <br />Number of Partial Inspection this Fiscal Year: I <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 5 <br />