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July 9, 2007 Kerr Coal Co. PO Box 459 Florence, CO 81226 Marr Strip Mine Complete, oversight inspection June 18, 2007 Participants: Janet Binns, Division of Reclamation, Mining, and Safety (DBMS) Henry Austin, Office of Surface Mining (OSM) I participated in a complete, oversight inspection of the Marr Strip Mine on June 18, 2007, with Janet Binns of DBMS. We conducted our field review on June 18, and conducted a records review on June 19 in Steamboat Springs. The primary purpose of this inspection was to evaluate offsite impacts. No offsite impacts were documented during the inspection. We walked portions of the reclaimed areas and made general observations. We made stops at the following (not all inclusive): The reclaimed former Marr Loadout is becoming well vegetated, and no excessive erosion was evident. We noted a well head at the former tipple area, and also a small electric transformer. No surface water runoff problems were noted. We drove to the mine and began at Pit # 1 where we also observed well established vegetation and no excessive erosion. We noted that the Pit # 1 surface water runoff outlet needs additional rip-rap armoring. We also noted here that the majority of the haulroad and pond G north of the county road aze reclaimed. We inspected the south end of Pit # 1, and also inspected the revegetation test plots on the pre-law lands. We next inspected the main haulroad, and former office and office pad location. These have been approved to remain permanent. We noted one area on the west side of the haulroad ditch adjacent to the double culvert that needs armoring or regarding. The office pad area is stable. Status of the sediment ponds area as follows: Ponds A, B, D, and E have been approved for permanent retention and an application for Pond F to remain permanent is being reviewed by DBMS. Ponds C and G have been reclaimed. We noted water in Ponds A, E, and F. We next inspected the former 720 Pit area. Revegetation here looks excellent with robust shrub growth and ground cover. No erosion problems noted. We inspected Pond F and no problems were noted. This concluded the field inspection. No offsite impacts were identified.