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Edna Mine, p~. 2 We began the inspection by conducting the field work on Sept. 22, and concluded with a records review at the Routt County Courthouse on Sept. 23. We made stops and observations of the following: We inspected the former train loadout /office /truck scales area /goat trail road /former coal conveyor corridor. /and access road entrance pad that are the subjects of the proposed bond release referred to above. This is some 15.6 acres total, and no problems were noted on these areas. The required hydrological modeling was completed on these areas prior to this bond release, and the sediment ponds in series adjacent to the railroad tracks are being addressed (removed} in a DMG permit action separate from the bond release request. Removal of the 4 sediment ponds represents the last remaining reclamation activity on the entire permit area. All areas inspected were stable. I discussed the pending bond release with BLM-Craig, CO, via voice mail to Rob Ernst on Sept. 23, 2003. Areas inspected next on the main mine reclamation area included: North end of the Moffat Pit, Moffat Pit sediment pond area that included a trickle discharge (all remaining sediment ponds and the string of pearls impoundments are approved for retention as permanent impoundments), former facilities and South of shop area, West Ridge areas including the non-topsoiled areas that appeared stable (with some areas here showing sparse vegetative cover), string of pearls water impoundments in the Center Ridge drainage area (Apparently there was a large rain event here this Summer isolated on this drainage, and the resulting runoff scoured the rip rap off of impoundment spillways exposing the underlying fabric protection on 3 of the down-gradient impoundments. Repairs were discussed during the inspection, and should be completed by the permittee during the current construction season.), West Ridge sediment ponds, spoil spring 001 discharge, Center Ridge Pond, and the NPDES combined discharge at this area (004). Mr. Kaldenbach is doing an excellent job of documenting water discharge quality to Trout Creek during routine inspections of the Edna Mine. No problems were noted on these areas. As indicated above, the permittee is performing minor erosion maintenance as required, and monitoring revegetation success on the permit area. This concluded the field inspection. Mr. Kaldenbach and I conducted a thorough permit and environmental monitoring records review at the Routt County Courthouse in Steamboat Springs, CO. Records reviewed included: current liability insurance, erosion inventory report (7/8/03), 2002 annual reclamation report, 8/2000 mid-term permit review & permit renewal application No. RN4 (approved 10-5-01), DMG inspection reports and the current bond release application are on file, annual pond/impoundment certifications are current, and the haulroad certification is dated 1995 and haulroads on the mine are approved to facilitate the postmining land use. The NPDES permit and DMR's were reviewed and are in order as is the 2/03 annual hydro, report and 7/03 on site hydro monitoring data, TR 41 addresses the runoff quality demonstration for the current- proposed bond release area discussed above, TR 42 addresses changes in the reveg. success standard also for the proposed bond release acreage to a commercial land use success standard, and finally the only permit stipulation remaining is No. 38 that involves the Kool Ditch requirements and is in effect in RN 4. This concluded the inspection. Please address any questions concerning this report to Henry Austin at haustin@osmre.Qov or to (303) 844-1400 x1466.