2015-10-07_INSPECTION - C1981022

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September 23, 2015 C-1981-022/Elk Creek Mine LDS GENERAL MINE PLAN COMPLIANCE: TR -76 was submitted by Oxbow Mining on 8/3/2015 and was found complete on 8/13/2015. The Division has not yet completed its initial adequacy review. The decision due date is 10/12/2015, but will likely need to be extended. RECLAMATION SUCCESS - Rule 4.15, Rule 3: At the time of the inspection Himes Drilling were fulfilling a contract to plug and seal 34 bore holes. Oxbow Mining expect the job to be completed by mid-October, and intend to submit a Minor Revision to the Division with the abandonment reports on completion of the work. Mr Kiger did not anticipate submitting a bond release application in the near future. Although there is no obligation on behalf of the operator to do so, the Division encourages Oxbow Mining to consider seeking bond release on any off-site bore -holes and pads that have been reclaimed. A contract had apparently been signed for the demolition of structures, with work expected to begin in mid-October. Contractors were also being sought to seal the portals and shafts. SUPPORT FACILITIES - Rule 4.04: Work was in progress to prepare the site for reclamation. Preparations were in line with the proposed plan described in TR76. To that effect, at the Elk Creek fan site: • The rock dust tanks had been removed, the eight concrete piles and the pad were due to be broken up. • The compressors had been removed, but the compressor buildings were going to be left empty for a future industrial post -mining land use. • Stockpiled props and longwall pan line will be sold, for use or for scrap, and removed from the site. • The intake fan vent shaft was partially covered with a tarp, but was ready to be capped and sealed. • The fan, fan building and ducting had been sold and will be removed after sealing. • The methane de -gas borehole (which is also permitted by COGCC) will remain and become the property of North Fork Energy, LLC. • The 3MW generation facility is outside of DRMS jurisdiction, but will remain and likely be increased in capacity to IOMW. The associated substation apparently already has sufficient capacity. The DMEA powerline connected to the substation is intended to remain. • The large water tank is expected to remain, as the town of Somerset has expressed an interest in keeping it. • The Oxbow Mining substation 94 will be removed. • The topsoil pile to the south east will be used during reclamation. • The northern most pad is intended to remain as it is, without any backfilling, grading or seeding, in order to fulfill an industrial post -mining land use. Similar activity was in progress at the Bear Creek fan site, where the vent shaft had been temporarily covered with steel. Number of Partial Inspection this Fiscal Year: 2 Number of Complete Inspections this Fiscal Year: 1 Page 3 of 13