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<br />July 27, 1998 <br />Oxbow Mining, Inc. <br />P.O. Box 535 <br />Somerset, CO 81439 <br />Sanborn Creek Mine <br />Joint, complete inspection <br />July 14 & 15, 1998 <br />Participants: <br />Tom Anderson P. E., Oxbow Mining, Inc. <br />Mark Milner, Oxbow Mining, Inc. <br />Bill Carter, Colorado Division of Minerals and Geology (DMG) <br />Dan Hernandez, DMG <br />Byron Walker, DMG <br />Henry Austin, Office of Surface Mining (OSM) <br />I participated in a complete oversight inspection of the Sanborn Creek Mine with the above <br />participants. Weather conditions were hot and dry, and ground conditions were dry throughout <br />the mine areas inspected. The focus of this inspection was off-site impacts and reclamation <br />success. <br />Prior to the inspection, I reviewed permitting actions on file at the OSM Denver, CO, offices <br />including the following: Minor revision (MR) No. 46 Proposed decision dated 05/22/1998, <br />concerning alternative sediment control at the West Valley Fill; MR No. 45 Proposed decision <br />dated 11/14/97 concerning the new ventilation shaft; MR No. 44 which updated the maps for <br />Technical Revision (TR) 29; Mazch 23, 1998, Permit Renewal application No. 3 notification; <br />Permit transfer and succession of operator findings document dated 1/23/98; TR 31 Mine <br />subsidence evaluation Proposed decision dated 1/8/98; and TR No. 29 Change mine plan and add <br />facilities Proposed decision dated 7/15/97. <br />We began the inspection on July 14 with Mr. Carter conducting a review of permitting and <br />environmental monitoring records at the mine offices. Mr. Milner and myself reviewed the <br />records with Mr. Carter. Records reviewed included: MR No. 47 Proposed decision dated <br />6/18/97 concerning removal of material from the east refuse pile for fill (fill for coal stockpile <br />base area); the current permit expires 10/11/98 and permit renewal (noted above) has been <br />submitted and is being reviewed by DMG; liability insurance is current through 7/2]/98; the <br />most current bond estimate calculated by DMG is 6/19/97, current bond held is Frontier <br />Insurance Company Surety # 114425 for $2,308,461.00; subsidence monitoring dated 11/24/97 <br />and permtttee has demonstrated that there are no structures nor renewable resource lands above <br />projected (planned subsidence from long wall mining) mining areas; annual reclamation report <br />dated 12/01/97 (I received copies of 1995 & 1996 annual reclamation reports); <br /> <br />RECEfVED <br />JUL 3 0 1998 <br />DIV. OF MINERALS <br />8 GEOLOGY <br />