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III. COMMENTS -COMPLIANCE Elk Creek C-1981-022 Pg 1 /2 25 October 2005 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 of the Elk Creek and Sanborn Creek Mines conducted by Jim Stark of CDMG. Jim Kiger of Oxbow accompanied me. The mine was actively producing coal and loading trains at the time of the inspection. The weather was warm and partly sunny and the ground was dry. Jim Kiger did say that there was a fair amount of rain at the site over the weekend. Availability of Records: All of the necessary records were available for review at the mine office. The only problem noted in the records was the current insurance certificate. Jim Kiger indicated that he had a new certificate but was unable to locate it. He called the insurance company office while I was there and on 31 October 2005 he e-mailed me a pdf file containing the current certificate. This has been placed in the queue for scanning. See the Records Checklist at the end of this report for more detailed information. Signs and Markers: All of the necessary signs were in place. The mine ID signs were in place and contained all of the necessary information. Disturbance boundary markers were in place as required. Roads: -The mine access road is a paved road. The road is well maintained and in good condition. - The main road and road spurs to the Sanborn Creek gob vent boreholes were all well maintained and in good condition at the time of the Inspection. There were no erosional problems noted on the road. - The road to access the now reclaimed Bear Creek and Elk Creek gob vent boreholes had some rutting due to the wet weather and the increased amount of use by hunters on the Hotchkiss Ranch property. The road does remain stable. Jim Kiger noted that OMLLC will blade the road sometime after hunting season, as weather permits (possibly next spring/early summer). - The road to the Hubbard Creek fan and substation was well maintained and stable at the time of the inspection. - There was some erosion on the 2-West refuse pile haul road but overall it remains stable and in good condition. Hydrologic Balance: - Pond B contained water at the time of the inspection but was not discharging. The embankment was well vegetated and appeared to be stable. No erosional problems were noted. An oil boom was in place in front of the discharge pipe. This pond needs to be cleaned. Jim Kiger indicated that cleaning has been scheduled for this fall. - Pond D contained water but was not discharging at the time of the inspection. The embankment was well vegetated and stable. No erosional problems were noted. The pond has an oil boom and it was in place. A trash rack has been placed on the primary discharge pipe. - Pond F contained a small amount of at the bottom of the pond. It was not discharging and it did not appear to have discharged in the recent past. The pond embankment was stable and well vegetated and no erosional problems were noted.