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May 29, 2007 CAM Mining, LLC P.O. Box 98 3148 Highway 139 Loma, CO 81524 Munger Canyon Mine Complete, oversight inspection May 23 & 24, 2007 Participants: Dan Mathews, Colorado Division of Reclamation, Mining and Safety (DBMS) Gary Isaac, McClane Canyon Mine LLC Scott Harr, Kiewit Western (reclamation contractors) Jim Stover P.E., J.E. Stover and Associates, Inc. Bruce Fowler, Bureau of Land Management (BLM) Henry Austin, Office of Surface Mining (OSM) I participated in a complete inspection as indicated above. Mr. Mathews led the inspection with Mr. Isaac and Mr. Harr participating May 23; and everyone except Mr. Isaac participating May 24. Weather and ground conditions were dry. The primary purpose of this inspection was to evaluate offsite impacts. No offsite impacts were identified during the inspection. We identified ourselves to Mr. Isaac during our inspection at the former train load out facility in Loma that is associated with the McClane and Munger Canyon Mines. We walked the reclaimed loadout site and made general observations. All the coal or coal like base material for the site was removed and either used for backfill to reclaim the Munger Canyon portals area, or placed into the coal refuse pile at the Munger Canyon Mine. The loadout is stable with little erosion evident and no signs of surface water runoff problems. Perennial species revegetation is becoming established under annual weed cover. We noted several patches of Russian Knapweed that should be eradicated, mostly at the edges of the reclaimed area. No other problems were noted at the loadout. Mr. Mathews identified us to Mr. Harr at the Munger Canyon Mine. Mr. Harr representing Kiewit Western reclamation contractors has mobilized a track excavator, small dozer, trailer, and fuel storage onto the mine and was making preparations to begin backfilling, final grading, and topsoil replacement on the disturbed areas of the mine. An endloader will also be mobilized to the mine. Mr. Mathews discussed the DBMS approval and newspaper publication of Technical Revision 22 that revised the reclamation plan for this mine, and recommended that Mr. Harr discuss the reclamation plan with Mr. Isaac and Mr. Stover before proceeding. Mr. Harr indicated he felt there may be a shortage of backfill material available at the portal area to achieve a 2:1 slope configuration as called for in the reclamation plan. Mr. Harr also indicated that they planned to finish work here in June (2 to 3 weeks from the inspection). We began the inspection by following the dozer route that was used to recently remove power poles from the mine. The dozer has caused some gouging, vegetation damage, and soil displacement into ephemeral washes that were crossed.