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Bowie No. 2 Mine, p£. 2 Monthly DMR's were reviewed and are current through the 3rd quarter for the 3 sediment ponds serving the mine site disturbance, ponds J and K completed for the new rail road loading facility are being added to the NPDES permit with pond J approved and pond K pending. The DMR's indicated no discharge for this quarter. Pond certification statements were reviewed for all 5 ponds and appeared to be complete. Annual impoundment re-certifications were complete for ponds b, c and d. The coal waste pile certifications were also current through the 3rd quarter and indicated compaction rates of 100%. The 3rd terrace is being constructed on the pile and the lower 2 terraces have been covered with soil material. Cover depth was not verified by the certification inspections. The soil cover needs to be completed and seeded/mulched/stabilized. Sediment pond inspections are also current through the 3rd quarter and indicate both pond c and d need sediment removal. (Sediment removal was active at pond c during this inspection and pond d will be cleaned out when pond c work is completed in approximately one week. Mr. Bear briefly discussed applying through the CO. Dept. of Health and DMG to use flocculants to settle suspended solids in sediment pond(s) when necessary prior to discharge. This will primarily affect pond c, normally the mine water discharge pond.) Air quality permits were current. Personal liability insurance was current through June 29, 2003. The current bond amount is $6,975,000.00 and is secured by Travelers Surety bond # 64S103738I78BCM for $1,975,000.00 and a $5 million dollar LOC from Warburg that was cashed and is now held by the Colorado Sec. of Treasury. Please contact Henry Austin at OSM as shown below if these bond conditions as listed above are not accurate as of this inspection report distribution and receipt by the permittee. We briefly reviewed the 2/8/02 AHR that lists 111.7 total disturbed acres at the minesite, which is now 200.7 total disturbed acres with the addition of both train loadout areas (new loadout at mine 2 and the transfer of the existing 39.90 acre train loadout from mine no.l). NPDES Permit CO 0044776 expires 2/29/04 and the new sediment ponds J and K are being added as indicated above. The stormwater management plans were reviewed and Mr. Dudash requested that the 2001 annual report submittal be added to the review file. We discussed permit stipulation 9 and referenced the recent 10/15/02 letter from the permittee's consultant to DMG that transmitted geotechnical data reports regarding the Bruce Park Dam (Terror Creek Reservoir) submitted under TR-22. This submittal is incorporated into permit Volume X, Geotechnical Studies, Bruce Park Dam. We were not able to track the 2001 deadlines noted in permit slip. no. 9 to determine if those activities had been completed. I will follow-up with a TR-22, and permit stipulation 9 review at DMG's Denver office to document the completion of these required activities. Mining will not be authorized within one mile of the Terror Creek Reservoir; pending completion of the requirements in permit stipulation no. 9, and approval by DMG. We also discussed the status of the other permit stipulations with Mr. Bear at the conclusion of the inspection.