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III. COMMENTS -COMPLIANCE Elk Creek C-1981-022 Pg 1 /3 30 July 2007 Below are comments on the inspection. The comments include discussion of observations made during the inspection. Comments also describe any enforcement acfions Taken during the inspection and the facts or evidence supporting the enforcement action. This was a partial inspection of the Elk Creek and Sanborn Creek Mines conducted by Jim Stark of CDRMS. Jim Kiger of Oxbow Mining, LLC accompanied me on the inspection. The mine was producing coal at the time of the inspection and the coal stockpile was full. The weather was hot and sunny and the ground was dry. Roads: -The mine access road is a paved road, The road is well maintained and in good condition. - The road to the Elk Creek portals and facilities area appeared to be stable and well maintained at the time of the inspection. No erosional problems were noted on the road at the time of the inspection. - The haul road to the West Valley Fill was appeared to be stable and there was no rutting on the road at the time of the inspection. The operator just replaced the downhill conveyor belt (from the Elk Creek portals to the coal stockpile) and the old belt was laid out on the road. The operator had rolled up approximately half of the belt at the time of the inspection. - The haul road to the II-West Valley Fill was a bit rutted but overall appeared to be stable and in good condition at the time of the inspection. - The road to the Hubbard Creek fan was well maintained and appeared to be stable at the time of the inspection. The access spur to the fan site itself was well maintained and appeared to be stable at the time of the inspection. No erosional problems were noted on either road at the time of the inspection. - The East Yard Haul Road was well maintained and stable at the time of the inspection. This road is used for accessing the mine when a train is being loaded and for general mine storage. No erosional problems were noted on the road at the time of the inspection. Hydrologic Balance: - Pond A contained water approximately six inches below the top and was not discharging at the time of the inspection. The pond is an incised pond and has been cleaned. The pond was stable at the time of the inspection. - Pond B contained water approximately four feet below the emergency spillway at the time of the inspection but was not discharging (discharge is through a gated valve below the water levell. The embankment was wel! vegetated and appeared to he stable. No erosional problems were noted on the pond embankment. The emergency spillway was stable. Pond B was cleaned since the last inspection, with the sediment being hauled and stored in the East Yard Pond until it dries, at which time it will be hauled to the refuse pile. - Pond C is a concrete dam below the West Valley FiII. The dam appeared to be stable at the time of the inspection. The pond was dry at the time of the inspection. - Pond D contained a small pool of water and was not discharging at the time of the inspection. The majority of the water was pumped to Pond B so the pond Could be cleaning. The pond embankment was wel! vegetated and appeared to be stable at the time of the inspettion. No erosional problems were noted on the pond embankment. Pond D has a trash rack and an oil boom and it was in place. Pond D was cleaned since the last inspection and the sediment was hauled to the East Yard Pond until it dries, at which time it will be hauled to the refuse pile.