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III. COMMENTS -COMPLIANCE Elk Creek C-1981-022 Pg 1/3 13 December 2006 ~7s-~ 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 complete inspection of the Elk Creek and Sanborn Creek Mines conducted by Jim Stark of CDRMS. The inspection was conducted on 13 December 2006. Jim Kiger of Oxbow Mining, LLC accompanied me on the inspection. The mine was not producing coal at the time of the inspection and the coal stockpile was low. The weather was cold and overcast and the ground was covered with snow and muddy in spots. A train had just been loaded and was sitting on the tracks at the loadout. Availability of Records: All of the necessary records were available at the mine office. Please see the DRMS Availability of Records form at the end of this inspection for more detailed information. Signs and Markers: All of the necessary signs were in place as required. All of the off-site locations that were visited had the appropriate mine ID and disturbance boundary markers as required. Roads: -The mine access road is a paved road. The road is well maintained and in good condition. - The east yard haul road was wet and muddy but appeared to be stable and well maintained at the time of the inspection. There were no rutting or erosional problems noted on the road. - The road to the Elk Creek portals and facilities area was wet and muddy but appeared to be stable and well maintained at the time of the inspection. No erosional problems were noted on the road. - The haul road to the West Valley Fill was partially covered with snow at the time of the inspection. There was some water flowing on the road but no erosional problems were noted. - The haul road to the II-West Valley Fill was inaccessible due to snow at the time of the inspection. -The back entrance to the mine from Highway 133 was wet and muddy but appeared to be stable at the time of the inspection. This road is primarily used to access the Sanborn Creek gob vent boreholes and the mine when a train is blocking the main entrance. Hydrologic Balance: - Pond A contained water approximately one foot below the top and was not discharging at the time of the inspection. The pond is an incised pond. The pond was stable at the time of the inspection. - Pond B contained water approximately five feet below the emergency spillway at the time of the inspection but was not discharging (discharge is through a gated valve below the water level). The embankment was covered with snow but appeared to be stable. No erosional problems were noted on the pond embankment. The emergency spillway was stable at the time of the inspection. - Pond D was full and was discharging at a rate of approximately 30 GPM at the time of the inspection. The water discharge appeared to be clear. Jim Kiger indicated that he had not yet sampled the discharge for the NPDES requirements but that he would that week. Water was also flowing into the pond due to snow melt at the time of the inspection. The embankment was covered with snow but appeared to be stable at the time of the inspection.