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May 29, 2007 CAM Mining, LLC P.O. Box 98 3148 Highway 139 Loma, CO 81524 McClane Canyon Mine Complete, oversight inspection May 24, 2007 Participants: Dan Mathews, Colorado Division of Reclamation, Mining and Safety (DBMS) Henry Austin, Office of Surface Mining (OSM) I participated in a complete inspection as indicated above. We identified ourselves at the mine office and Mr. Mathews began by conducting the field inspection. Weather and ground conditions were both dry, and there was no sign of recent surface water runoff. The primary purpose of this inspection was to evaluate offsite impacts. No offsite impacts were identified during the inspection. We began at the portals pad and walked the disturbed areas making general observations. The portal pad is stable with little erosion evident and no signs of surface water runoff problems. We made inspection stops and observations at the following: fan portal, the main undisturbed runoff outlet is clear and functional, secondary undisturbed runoff outlet, the surface water runoff ditch west of the lime silo should be better defined to divert runoff to the protected outlet, the equipment and material storage areas and the mine entrance portal are well maintained and neat and orderly. The northern undisturbed area runoff diversion was clear. The coal stockpile area roads were dusty, and the permittee needs to water these roads when they get dry and dusty. Trucks were being loaded during the inspection. No other problems were noted at the portal pad. The roadside ditch on the north side of the coal yard haulroad (road entrance to coal stockpile) needs to be better defined to direct runoff properly. The sediment dugout traps along the haulroad are all functioning well, At the sediment trap across from the sediment pond, the culvert outlet under the road here dischazging into the sediment pond inlet has a partially crushed outlet that needs to be opened up to full flow diameter and mazked for protection. The haulroad upslope from this location needs to have the roadside ditch better defined on the north side adjacent to the material storage area. There is cable in the ditch. The sediment pond was holding water but was not discharging. The embankment and spillways appear stable. The topsoil stockpile and construction pile silt fences need to be maintained, some have drooped down. The topsoil stockpile needs to be seeded in the fall. Whitetop weeds that are in seed located on or near these stockpiles should be cut, bagged, and removed to prevent seed spreading to the piles.