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III. COMMENTS -COMPLIANCE <br />Below are comments on the inspection. The comments include discussion of observations made during the inspection. Comments <br />also describe any enforcement actions taken during the inspection and the facts of evidence supporting the enforcement action. <br />Colowyo Coal Company, L.P. (Colowyo) representative Tay Tonozzi (Tonozzi) accompanied Byron G. Walker <br />(Walker), Colorado Division of Minerals and Geology (Division), during this inspection. Jim Stazk (Stark) of <br />the Division was also part of the inspection team. Stazk's primary purpose was to observe conditions in the <br />field that would assist in the preparation of a reclamation cost estimate. Inspection findings as reported herein <br />were discussed with Crellin Scott (Scott) and Tonnozi at the close of the inspection. This report was prepared <br />in, and issued from, the Division of Minerals and Geology (Division) offices in Denver. <br />A number of potential revisions to the Permit Application Package have been identified in previous inspection <br />reports and were discussed at the debriefing. These revisions will be identified in the findings of the current <br />midterm review of the permit. <br />HYDROLOGIC BALANCE <br />The mine site was covered with about a foot of snow. There was dischazge was from the Streeter Pond. There <br />was no dischazge from the Prospect, Gulch A, Gossazd Loadout, Rail Loop, or Work Area Ponds. The Stoker <br />Loadout pond was observed from a distance. These ponds appeared to be in good repair. The Section 16, East <br />Taylor, and West Pit ponds were not inspected (access denied by snow). <br />Tonozzi reported that the Gulch A pond had been cleaned, but such cleaning was not inspected. <br />Surface runoff from undisturbed areas above, and portions of disturbed areas of, the western portion of the <br />West Pit could reach the East Taylor pond. The clean-water diversion ditch and disturbed area collection <br />ditches had been intercepted by the pit excavation. No surface flows were observed at the time of the <br />inspection. <br />BACKFILL AND GRADING <br />Overburden and/or interburden were being transported by truck to backfill areas of the East Pit and to transition <br />zone azeas of interface between the West Pit Excess Spoil Fill and West Pit backfill. Dragline back-casting was <br />underway in the West Pit. <br />SUPPORT FACILITIES <br />As part of Stazk's work, petroleum and other storage tanks were inventoried, and some structures were <br />inspected throughout the permit area. <br />TOPSOIL <br />Tonozzi reported that shaping of topsoil pile 16D (at the leading edge of the East Pit) had been completed. <br />However, snow denied access to the site of this storage pile. Areas where topsoil had been placed in areas <br />of East Pit reclamation were inspected. Topsoil had been placed with the aid of construction stakes to <br />specified depths in compliance with the permit. <br />Page 3 of 5 pages, inspection of 6 January 2005, BGW <br />