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III. COMMENTS -COMPLIANCE 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. General Comments This was a complete quarterly inspection of the mine site and office records, conducted by Dan Mathews of the DMG Grand Junction Field Office. Field inspection was conducted at various times over the course of several days, concluding on the morning of June 1; office records were checked on the afternoon of June 1. All disturbed areas were inspected. Tonya Hammond, SCC owner representative, was present during the inspection on the morning of June 1, and during the records check at J.E. Stover & Associates office that afternoon. There was no operator contact present during the remainder of the inspection. Weather was clear and warm, and ground conditions were dry. There has been very minimal precipitation during April and May. Availability of Records Required records were on file and up-to-date through the 1st Qtr., 2006. Annual impoundment certifications and the annual rill and gully inspection were also completed during the 1S1 Qtr., 2006. Roads The condition of permitted roads and associated structures was in general satisfactory. Sediment deposition at the outlet of the culvert at the light use road crossing of the RSRDA upper diversion ditch (noted in the previous complete inspection) had been properly cleaned out. Some minor rilling was observed in a few locations along the 2W Portals access road; water bar construction and maintenancelextension is warranted in a few locations to prevent further erosion along the road in these segments. Hvdrolooic Balance Drainage and sediment control structures were in general properly maintained and functional. The only exception was that several of the silt fence installations require maintenance. Silt fences that require maintenance include the following locations: 016 Discharge Site SAE (re-staple fabric to stakes), upper silt fence at "B" substation site (fabric shredded, needs to be replaced), 2-West Portal Substation SAE (one of the silt fences needs to be re-set and trenched in where a stake had been dislodged (probably by a cow). As noted in previous inspections, the Coal Creek permanent diversion channel has incised along a segment adjacent to the Pond 10 embankment. The side-cutting initiates at a constriction in the channel caused by a sandstone outcrop on the side of the creek opposite the pond embankment. Placement of large protective riprap beginning at the point of initiation of the side-cutting appears to be warranted, to prevent further erosion of the channel bank, which could ultimately compromise the Pond 10 embankment. Riprap placement should be completed during June or early July, prior to the late summer/fall monsoon storm season. Sediment Pond 8 contained a shallow pool of water, less than one foot deep (likely alluvial ground water); other sediment ponds and SAE sumps were dry. Diversion and collection ditches and berms were in general properly maintained and functional. Some sediment cleanout maintenance had been performed along a segment of the CRDA-2 upper diversion and the RSRDA upper diversion since the previous complete inspection. Maintenance is warranted along the lower segment of the North Collection ditch at the RSRDA, to clear the dense accumulation of dead material from last year's weed growth. 3