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(Page 2) MINE ID # OR PROSPECTING ID # M-1982-036 INSPECTION DATE 07/28/03 This was an inspection of the Mesa Mine, Permit No. M-1982-036, conducted by Erica Crosby of the Colorado Division of Minerals & Geology. Robert Shelving of Seneca Coal Company was present during the inspection. The site is located 4.5 miles southeast of Hayden, in Routt County Colorado. A permit was issued to Peabody Coal Company on June 22, 1982. The current permit area is 96.5 acres. The Division currently holds a financial warranty in the amount of $90,246.00. The gravel from the Mesa Mine is used at the Seneca Coal Company's mining operations for road construction and road maintenance. No mining was taking place during the inspection. According to the operator, the area is mined one time a year and stockpiled for use throughout the winter months. The site is mined in blocks from east to west. As mining is completed in a block, overburden materials are backfilled into the pit and replaced with topsoil. The existing "block" is approximately 150 feet wide by 800 feet long. Pit depth is approximately 15 feet, and the pit contains water. Prior to mining, water is pumped from the pit into Pond 2. The northern boundary of the pit is within 75 feet of four sets of high voltage powerlinea. The pit is sloped from 3h:ly to 4h:ly along this face. Based on the depth of the pit (15 feet) and the slope of the northern face, there should be no adverse impacts to the high voltage power structures. The postmining land use for the site is pastureland/cropland. The reclaimed portion of the site consists of alfalfa. A small pond (pond #1) is located on the northeastern edge of the permit area. This pond contains water and acts as a sediment control structure for the reclaimed portion of the site. Pond #2 is located on the western edge of the site. Weeds were noted on the pond embankment that will need to be controlled. The Division was unable to locate a mine identification sign. Rule 3.1.12 of the Construction Materials Rules and Regulations require the operator to post a sign with the name of the operator, a statement that a reclamation permit for the operation has been issued by the Mined Land Reclamation Board (MLRB) and the permit number. This sign will need to be posted at the entrance to the site. Proof of compliance (in the form of photographs) must be submitted to the Division by October 1, 2003. See page 3 for additional information. I & 8 Contact Address NAME OPERATOR STREET CITY/STATE/ZIP Robert Shelving ^ Seneca Coal Company ^ P.O. Drawer D ^ Hayden, Colorado 81639 INSPECTOR'S INITIALS ESC CE BL FS HW HMWMD (CH) SE ^ WQCD (CH) cc: Carl Mount; DMG (via a-mail)