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III. COMMENTS -COMPLIANCE Below are comments on the inspection. The comments include discussion of observations made during the inspection. Comments also describe any enforcement actions taken during the inspection and the facts or evidence supporting the enforcement action. This was a partial inspection conducted by Kent Gorham of the Colorado Division of Reclamation, Mining, and Safety (Division). Deserado is an active underground mine operating in the B seam using the longwall mining method. Snow covered the ground in most areas except steep, south-facing slopes. The weather on this day was clear and temperatures were normal for early February. Scott Wanstedt of Blue Mountain Energy accompanied me on this inspection. Roads Roads were clear of snow and generally dry. The refuse haul road surface was free of ruts, damage, or standing water. The road surtace was moist and dust produced by refuse haul trucks was not noted. Straw bales along the road ditch were observed and appeared intact and functional. Hydrologic Balance Ponds site-wide were snow-covered. Cold temperatures have prevented or limited surface runoff. Some water from operations at the main facility was observed but this flow was not significant and was entering pond DP-1 as designed. A large culvert diverts flow from above the facility area underneath all facilities and exits the culvert below pond DP-1. No flow was noted from this culvert. Processing Waste The refuse disposal areas were snow-covered, with the exception of recently stockpiled refuse that awaits drying, spreading, and compaction. The stockpiled material was spread over about one-two acres approximately 10-12 feet thick. This refuse material is spread in two-foot lifts during dry periods in the spring, summer, and fall. Subsidence Previous underground mining in the D-seam has resulted in ground cracking along a ridgeline in the SE'/<of Section 3, T2N R101W of the 6~h Principle Meridian. These tension cracks range from a few inches to about 12 inches in width. The cracks are likely limited in depth, with visual depths of 4 to 8 feet. These are common along ridgelines where a sandstone unit is at or near the surface and overburden depths are relatively shallow. With any increase in the soil profile or weathered C horizon, these cracks disappear. Sloughing and weathering also act to fill these features over time. Snow cover masked some of the cracks but the more significant cracks were visible due to the melting of the snow caused by the presence of the crack itself. The structures of significance relative to subsidence at this mine are a powerline that serves the mine itself and paved county roads. Subsidence has minimal affects on the county road surface and can be repaired easily.