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August 24, 2015 C-1981-022/Elk Creek Mine JRS <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 N - Roads <br />N - Availability of Records R - Reclamation Success <br />N - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife R - Support Facilities On-site <br />R - Hydrologic Balance N - Signs and Markers <br />R - Gen. Compliance With Mine Plan N - Support Facilities Not On-site <br />N - Other N - Special Categories Of Mining <br />R - Processing Waste N - Topsoil <br />COMMENTS <br />This was a partial inspection of the Elk Creek Mine conducted by Jim Stark of the Colorado Division of <br />Reclamation, Mining and Safety. Jim Kiger, representing Oxbow, LLC, accompanied me on the inspection. The <br />mine was not producing or shipping coal and has not been operational since a fire in the gob was discovered. The <br />remaining coal stockpile was sold and hauled off site and much of the remaining equipment was auctioned off. <br />Some of this equipment, which is queued up at the Elk Creek facilities area and the pad for the coal stockpile, was <br />being loaded and hauled away during the inspection. The weather was warm and sunny and the ground was dry <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 Monitoring <br />4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, <br />4.05.9; Stream Buffer Zones 4.05.18: <br />- Pond B contained water approximately six feet below the emergency spillway and was not discharging at the <br />time of the inspection. Discharge from the pond is through a gated valve below the surface of the water. This <br />pond collects runoff from the lower facilities area, including wash down water. The pond embankment was well <br />vegetated and stable and no erosional problems were noted. <br />- Pond C was dry at the time of the inspection. The concrete embankment was stable and no problems were noted. <br />- Pond D contained water approximately four feet below the primary spillway and was not discharging at the time <br />of the inspection. The pond embankment was well vegetated and stable and no erosional problems were noted. <br />- The ditches at the Bear Creek Fan pad were clean and stable, with no erosional problems noted. Straw wattles <br />have been placed in the ditch to help control flow. <br />GENERAL MINE PLAN COMPLIANCE: <br />- There are currently no underground mining operations at the Elk Creek Mine. <br />PROCESSING WASTE/COAL MINE WASTE PILES — Rule 4.10 and 4.11: Drainage Control; Surface <br />Stabilization; Placement: <br />- There is a small hot spot on the bench of the West Valley Fill below the haul road. The hot spot is venting on the <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 7 <br />