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III. COMMENTS -COMPLIANCE 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 conducted by Kent Gorham of the Colorado Division of Minerals and Geology. The weather was clear and mild and ground conditions were excellent. All areas were accessible by foot or vehicle. This site no longer serves as a coal loadout. The railroad tracks have been removed down to mile marker #2 near Trinidad and the only activity is limited to trucking of the remaining silo coal and stockpile coal to a local cement plant. Ron Thompson represented Picketwire Processing during the inspection. Availability of Records The public copy of the mine records is kept at the office of Peak Project Management (PPM). The contact, address, and phone number for PPM is Ron Thompson, Peak Project Management, 34115 County Road 20.8, Trinidad, CO 81082, 719-846-4975. The liability insurance certificate cancellation clause is now accurate and in compliance with Rule 2.03.9. All other records were found in compliance as detailed on page 2a of this report. Hydrologic Balance The water level in Pond 8 continues to decline with pumping to pond 6 and drier weather conditions. The operator will soon measure the sediment level and determine the need to clean the pond of sediment. Pond 4 continues to hold a small amount of water in the southeast end. Ditches route runoff from the development waste pile to this pond and were inspected and found in excellent condition. Pond 7 held water in the back 2/3rds of the pond. The two containments at the West Mine were dry and the three containments near the highway/refuse conveyor intersection were also dry. All pond embankments and spillways appeared in good condition. Perimeter ditches and culverts routing disturbed area runoff away from the Purgatoire River were traversed and found in normal condition. The perimeter ditch west of the reclaimed west coal stockpile needs maintenance work to ensure proper function. Processing Waste The 100-year ditch around the refuse pile (RDA) appeared in excellent condition. Outslopes of the four reclaimed terrace benches are well vegetated and no springs or seeps were noted. Downdrains appeared normal with no sign of damage. Support Facilities Hauling of coal from the west coal silo continues on a less frequent schedule than the previous months. According to Mr. Thompson, the buyer of the remaining coal will also take the coal pushed into piles in the coal stockpile footprint. Removal of this coal will reduce the amount of material that will require disposal or covering upon final reclamation.