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<br /> <br />DENVER FIELD BRANCH <br /> <br />INSPECTION NARRATIVE <br /> <br />COMPANY: CAM Mining, LLC <br />MINE: Munger Canyon Mine <br />PERMIT NO: C-1981-020 <br />DATE OF INSPECTION: November 25, 2014 <br />WEATHER: Cold and partly cloudy, mid 30s <br />COMPANY OFFICIAL: Jim Stover, PE, of JE Stover & Associates <br />STATE OFFICIAL: Janet Binns, Zach Trujillo <br />OSMRE OFFICIAL: Thomas Medlin, Spencer Shumate (badge #545) <br />FLMA OFFICIAL: Scott Gerwe (Bureau of Land Management) <br /> <br />OSMRE participated in a partial inspection of the Loma Loadout in Mesa County, Colorado as well as parcels <br />relating to the Munger Canyon Mine in Garfield County, Colorado to determine adequacy for bond release <br />(Phases III and I&II, respectively). The Munger Canyon Mine is an underground coal mine operated by CAM <br />Mining, LLC. Mining activities of the federally owned coal at Munger Canyon began in 1977 under an <br />exploratory permit through the United States Geological Survey (USGS). Following passage of the Surface <br />Mining Control and Reclamation Act of 1977 and establishment of the Colorado permanent regulatory program, <br />the mine was permitted through the Colorado Mined Land Reclamation Board (CMLRB) and the Office of <br />Surface Mining Reclamation and Enforcement (OSMRE). Due to unfavorable market conditions, the Munger <br />Canyon Mine was placed in temporary cessation in January, 1984 where it remained for twenty years. No coal <br />was ever removed under the Colorado permanent program. The current status of the Munger Canyon Mine is <br />permanent cessation. The nearest major town is Fruita, Colorado, approximately five miles east of the Loma <br />Loadout. The total acreage associated with this bond release equals 18.5 acres. These 18.5 acres are comprised <br />of 1) reclaimed loadout; 2) light use road; 3) mine portal area; 4) main haul road: and 5) coal mine waste <br />disposal area. The permitee has requested release of $24,000 in liability from the total current bond amount of <br />$65,966, which was last adjusted by DRMS via bond decrease rider dated November 10, 2014. DRMS <br />administers the bond release process in part through the State- Federal Cooperative Agreement found at 30 <br />CFR, Part 906.30. <br /> <br />Portions of the following legal area descriptions were listed as candidates for Phase I, II, and III bond release in <br />the company’s application: <br /> <br />th <br /> Township 7 South, Range 102 West, 6 PM <br /> Section 27: SW/4 <br /> Section 28: N/2S/2, S/2N/2, N/2NE/4 <br /> Section 29: S/2NE/4 <br /> <br /> Township 1 North, Range 3 West, Ute Meridian <br /> Section 3: NE/4NW/4 <br /> <br /> Township 2 North, Range 3 West, Ute Meridian <br /> Section 34: SW/4SW/4 <br /> <br /> <br /> <br />For the completion of Phase I and II, the operator must complete the backfilling/regrading (which may include <br />the replacement of topsoil) and drainage control of a bonded area in accordance with the approved reclamation <br />