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October 21, 2015 C-1981-018/Deserado Mine CCW <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 R - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />R - Fish & Wildlife N - Support Facilities On-site <br />N - Hydrologic Balance N - Signs and Markers <br />N - 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 and special focus oversight inspection of the Deserado Mine conducted by Clayton Wein of the <br />Colorado Division of Reclamation, Mining and Safety (the Division). Jim Stark of the Division, Tom Medlin and <br />Dan MacKinnon of the Office of Surface Mining Reclamation Enforcement (OSM) accompanied the inspection as <br />well as Scott Wanstedt of Blue Mountain Energy, Inc. (BME). The special focus topics for the inspection were <br />errosion control on reclamed refuse stockpiles and vegetation rrefrence areas. The weather was cloudy in the <br />morning turning to partly cloudy in the afternoon and the ground conditions were damp. Rain occured the day and <br />night previous to the inspection, totaling about 1 inch. The temperature for the day reached approximately sixty <br />degrees farenheight. <br />The reclamed RP -1 refuse pile was inspected for erosion control. RP -1 was initially seeded in 1992 and reseeded <br />in 1997. The refuse pile and associated perimeter ditch was inspected for rills, gullies, and other erosional <br />features. Three vegetation reference areas were inspected; Sage/Western Wheatgrass, Greesewood, and the <br />Colorado Wildrye. The reference areas were inspected to make sure the areas were representative of the areas that <br />are to be reclamed at the mine site. <br />FISH and WILDLIFE — Rule 4.18: <br />On the top of RP -1, wildlife rock pile shelters (Photo 1) have been placed to promote wildlife to <br />live on and use the reclaimed area. Bird droppings and Rabbit/rodent droppings near and on the wildlife rock <br />shelters. During the inspection several rabbits were seen as well as "rabbit trails". The vegetation showed signs of <br />grazing by rabbits and rodents. Elk droppings were seen on multiple areas on and around RP -1. <br />Elk, rabbit and rodent droppings and trails were found at or near all of the reference areas. The Black Greasewood <br />Reference area had clear evidence of grazing on the Black Greasewood (Photo 2). <br />PROCESSING WASTE/COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 9 <br />