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<br />June 14, 2004 <br />Oxbow Minerals, LLC <br />P. O. Box 535 <br />Somerset, CO 81434 <br />Elk Creek Mine !Sanborn Creek Mine <br />Complete, oversight inspection <br />June 8 & 9.2004 <br />Participants: <br />Tim Kiger, Oxbow Minerals, LLC <br />Jim Burnell, Colorado Division of Minerals and Geology (DMG) <br />Henry Austin, Office of Surface mining (OSM) <br />I participated in a complete, oversight inspection of the Elk Creek / Sanborn Creek Mine <br />with the above participants. This site was selected by the joint DMG / OSM oversight <br />team for inspection during the 2004 evaluation year. Weather conditions were hot and <br />dry, and ground conditions were dry throughout the areas inspected. The primary focus of <br />this inspection was off site impacts. No off site impacts were identified during the <br />inspection. <br />Mr. Burnell began the inspection by conducting a thorough permitting and environmental <br />monitoring records review at the mine offices. The records review included: DMG permit <br />renewal no. 4 was issued 10/11/03 and expires 10/11/2008, Four permit stipulations are <br />listed in the most recent DMG proposed decision document as No's. 14, 16, 25 & 34, <br />with 25 & 34 being resolved. 2003 annual hydrological monitoring report was reviewed, <br />ls` quarter inspections are current for all sediment ponds / impoundments and the gob pile <br />(2°~ bench outslope was reclaimed during 2004 with 4 feet of soil material and the new <br />2 West gob pile location is being constructed. Sediment pond no. 5 will be constructed <br />below gob pile 2 West), 15` quarter DMR's are current with no discharges reported, 10/2, <br />2003 annual subsidence monitoring report, 1/16/2004 annual reclamation report, surface <br />and ground water sampling was briefly reviewed, NPDES permit CO-0000132 is current <br />through 5/31/09, liability insurance is current through 9/1/2004, and the current bond <br />amount is $3,117,045.00. DMG conducted a bonding compliance check on the facilities <br />here at this site on June 3, 2003. This concluded our records review. <br />We began the field inspection at the reclaimed fan portal on Sanborn Creek. This area is <br />stable and the ASCA is functioning. Elk /sheep have destroyed a few hay /straw bales in <br />2 separate locations here. We discussed the possibility of making an SAE demonstration <br />for this area in order to discontinue straw bale sediment control; or straw bales must be <br />maintained in the mean time. The area is well vegetated, although cheat grass and <br />bindweed are present in several areas primarily due to continued drought conditions / <br />competition with grasses. <br />