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III. COMMENTS COMPLIANCE <br />Below are comments on the inspection. The comments include discussion of observations made <br />during the inspection. Comments also describe any enforcement actions taken during the <br />inspection and the facts or evidence supporting the enforcement action. <br />This was a complete inspection conducted by Kent Gorham of the Colorado Division of. <br />Minerals and Geology. At this time, the operation has yet to commence coal mining <br />activities. <br />Availability of Records <br />The mine records are kept at the Tri-State Railyard office on the west side of <br />Trinidad along Highway 12. All required records were found as indicated on the <br />attached record checklist. <br />Signs and Markers <br />The main mine entry sign at Lorencito Canyon was found in compliance with Rules 4.02 <br />and 4.30.2. <br />Hydrologic Balance <br />Gravel activities for gas road development continue in Lorencito Canyon. Dewatering <br />of gas wells was observed in the Bonita Canyon area. An estimated 40-60 gallons per <br />minute of water was being pumped from each of three gas wells visited. These flows, <br />if maintained at these levels, will add greatly to the surface water available in many <br />ephemeral drainages at the site. <br />Ground water monitoring sites MW-5 and MW-6 were visited. Each site appeared in <br />normal condition. The three well caps at MW-5 were not locked. <br />There is no change in the status of the operation at this time. As noted in previous <br />inspections. gas development continues on the property. Even though the mine status is <br />listed as active, coal mining operations have not commenced at this time. No coal <br />mining activity was noted. <br />Page 3 <br />