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~~ <br />March 20, 2006 <br />BTU Empire Corporation <br />29515 Routt County Rd. No. 27 <br />Oak Creek, CO 80467 <br />Eagle No. 5 & 9 Mines <br />Complete, oversight inspection <br />March 15, 2006 <br />Participants: <br />Janet Binns, Colorado Division of Minerals and Geology (DMG) <br />Jerry Nettleton, BTU Empire Corporation <br />Henry Austin, Office of Surface Mining (OSM) <br />I participated in a complete, joint, oversight inspection of the Eagle No. 5 & 9 Mines on March <br />15, 2006. This mine was selected for inspection during the 2005-2006 evaluation year by the <br />DMG-OSM Oversight Team. Weather conditions included snow and blowing snow that limited <br />our inspection observations on the ground. Ground conditions were snow covered throughout the <br />mine site, making field observations of the surface facilities east of highway 13 impractical as <br />the mine is in temporary cessation and the roads have not been plowed. We also decided that <br />accessing the surface properties above underground mining workings west of the Yampa River <br />was not possible due to snow cover; nor did we inspect the Williams Strip reclamation area for <br />the same reasons. <br />Prior to the inspection, I reviewed the previous permit renewal for this mine, DMG's Proposed <br />Decision document from 2000. The current permit renewal has been held up due to right of <br />access litigation. That litigation has now been dismissed, and the permit renewal is proceeding. <br />This mine has been in temporary cessation for several years, and there has been very little if any <br />change to any of the existing surface facilities. The site is being actively maintained, and <br />environmental monitoring is occumng as required under the approved temporary cessation. <br />The mine employs year around dewatering (pumping) of the underground workings, and this <br />mine water is discharged through surface impoundments that are approved NPDES outfall <br />locations. <br />Mrs. Binns conducted a thorough review of permitting and environmental monitoring records at <br />the mine offices. The review included the following: The permit area contains approximately 422 <br />disturbed surface acres and 258 reclaimed areas. This includes the reclamation of the Williams <br />Strip surface mine, and backfilling & grading / topsoiling /and, seeding of the former Mine 5 <br />portal area. Vegetation monitoring of the Williams Strip was conducted in 2005 (year 9) and is <br />scheduled to be conducted again in 2006 (year 10). The Williams Strip has been reclaimed <br />longer than 10 years, and the 2005 sampling preliminarily indicates that the area will meet or <br />exceed approved revegetation success standards according to Mr. Nettleton. <br />