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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 Civ~sion of <br />Minerals and Geology. Ron Thompson of Peak Project Management represented the <br />operator, Picketwire Processing, LLC during the inspection. This former <br />underground mine is permitted to process coal from the nearby Lorencito Coal mine <br />(#C-96-084). Due to economic conditions, the Lorencito Canyon mine has not <br />commenced operations at this time and the New Elk mine remains in temporary <br />cessation until coal is produced. Underground mining ceased at the New Elk mine <br />in the late 1980's and processing of coal from the Golden Eagle mine (#C-81-013) <br />ceased in March of 1996. Activities at the New Elk mine consist mainly of <br />monitoring and maintenance during temporary cessation. The weather was warm and <br />seasonable. <br />Hydrologic Balance <br />All ponds and containments at the site appeared in good condition. The three <br />containments near the conveyor all held a small amount of water. The containments <br />at the West Mine were found dry or holding a small puddle in the bottom. Pond 4 <br />held water at less than 15% capacity. Pond 5 also held water some 1 foot below <br />the lowest discharge point. Pond 7 held water but it was at least 12-18" below <br />the lowest set of holes in the primary riser. A photograph was taken of the <br />primary riser. Spillways at all ponds appeared in good condition. Pond 8 (RDA) <br />held water at 80% capacity but the water level was 2 feet below the drop inlet <br />discharge structure. Sediment delta formation continues in this pond from the two <br />downdrains leading from the surface of the RDA. <br />Ditches and culverts around the site appear to be functioning as designed. One <br />exception to this notation was culvert C-60 on ditch D-2 at the Development Waste <br />Pile (see Map 13. Sediment and Surface Water Control Plan, East Portal). The <br />outlet side of this culvert was blocked with sediment. No evidence of overflow to <br />the clean water ditch was observed. This culvert was approved to give the <br />operator the flexibility to install or remove this culvert as needed. Rain <br />appeared imminent this afternoon. To ensure no overflow due to this blockage, the <br />operator mobilized a backhoe and restored flow around the culvert using a ditch. <br />Access to the pile is not necessary at this time. <br />The limited undercutting noted in the Purgatoire River in the reconstructed <br />section west of the prep plant has been repaired. The large boulder causing the <br />problem proved too large to be moved by equipment. Instead, large sandstone rock <br />was added at this location to protect the channel bank. The operator should <br />periodically monitor this repair during increased flows. <br />3 <br />