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III. COMMENTS - COMPLIANCE <br />Below are comments on the inspection. The comments include discussion of observations <br />made during the inspection. Comments also describe any enforcement actions taken during <br />the inspection and the facts or evidence supporting the enforcement action. <br />This was a complete inspection conducted by Kent Gorham of the Colorado Division <br />of Minerals and Geology. Ron Thompson of Peak Project Management represented <br />Basin Resources Inc during the inspection. Ground conditions were dry and the <br />weather was warm and mild. This former underground mine site is reclaimed. <br />Availability of Records <br />The public copy of the mine records are kept at the Tri-State Railyard office <br />located along Highway 12 on the west side of Trinidad below the dam at Trinidad <br />State Park. All required records were found in compliance. However, the <br />insurance certificate showed an expiration date of March 1, 2001. Basin Resources <br />is in the process of sale to Westmoreland Coal Company. A current copy of the <br />liability certificate is required that shows continuous coverage from March 1, <br />2001. The attached records checklist details the results of the records <br />inspection. <br />Hydrologic Balance <br />All sediment ponds have been removed from the site. Areas traversed on foot <br />included the main facility reclaimed area, the development waste pile, the topsoil <br />borrow area, water tank pad. and the former location of pond 2. The two <br />ventilation shafts in Apache Canyon were also visited. No evidence of significant <br />erosion or sedimentation was noted in any of these areas. Hydrologic litter cover <br />from previous vegetative growth is excellent in most areas. Repair of the small <br />hole south of the former Jeffery fan site was noted. Straw bales used for erosion <br />control on the topsoil borrow area have effectively disintegrated. Vegetation <br />cover is now adequate to control erosion of this gently sloping area. <br />Surface and ground water monitoring sites were inspected and the following <br />observations were noted. <br />CCAW-1 Water level 32.8 feet from top of casing. Well was not capped or labeled <br />for positive identification. Water was bailed from the well and the <br />electrical conductivity was measured at 1300 umhos/cm. <br />PAW-5 Could not located based on Map 7A. <br />PAW-6 An alluvial well was located north of ground water well LA-264. This <br />well was labeled AL-42. The well was bailed and the water was light <br />orange in color. Algae was also noted in the water. The electrical <br />conductivity was measured at 300 umhos/cm. The well was capped but the <br />3 <br />