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III. COMMENTS - COMPLIANCE <br />Below are comments on the inspection. The comments include discussion of observations <br />made during the inspection. Comments also describe any enforcement actions taken during <br />the inspection and the facts or evidence supporting the enforcement action. <br />This was a partial inspection conducted by Kent Gorham of the Colorado Division of <br />Minerals and Geology. Weather on this day was moderate and breezy. Mike Powell <br />representing the Hill Ranch met me at the gate at 8 am. Dickie Hill and Sid Bayes <br />also joined the meeting at about 8:45 am. The purpose of the meeting was to <br />discuss operation and reclamation concerns of the Hill Ranch. Lorencito Coal <br />Company has recently submitted a Permit Revision (PR-O1)to permit #C-96-084. The <br />permit revision was found incomplete on May 17, 2001. <br />Signs and Markers <br />The mine identification sign will be updated following a determination as to the <br />future status of the mine operation. This large sign at the entrance to the <br />property has taken a beating from numerous collisions with large vehicles. <br />~drologic Balance <br />A proposed pond location east of the confluence of Little Jeff Canyon and <br />Lorencito Canyon was inspected. This pond would control drainage and sediment <br />from the proposed contour operations in Little Jeff Canyon. Most of this area is <br />cottonwood timber and limited open ground exists in this area. Flow was noted in <br />Lorencito Canyon and in Little Jeff Canyon near this location. <br />General Mine Plan Compliance <br />The mine has yet to commence operations at this time. Rule 2.01.5(2)(a) requires <br />that a permit be terminated if the permittee has not commenced the surface and <br />coal mining reclamation operations covered by the permit within three years of the <br />date of the issuance of the permit. The permit issuance date is November 7, 1997. <br />The permittee requested an extension due to pending interest from a third party. <br />On May 11, 2001 the Division notified Lorencito Coal Company that based on <br />information received by the Division, the permit would be extended to May 10. 2002 <br />for commencement of operations. <br />There is no change in the status of the operation at this time. Even though the <br />mine status is listed as active, coal mining operations have not commenced at this <br />time. No coal mining activity was noted under this permit. Gas extraction <br />activities continue. <br />3 <br />