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Lorencito Coal Company (LCC) 20500 Highway 12 Weston, CO 81091 Lorencito Canyon Mine C-084-96 Complete and special focus inspection 9/24/2002 Mitch Rollings, 370, OSM Kent Gorham, DMG Elmer Bentley, LCC This was a complete inspection with an emphasis on blasting for an oversight special focus review being conducted this year. Permit C-084-96 expires this year on 11/7/2002. The $2.4M bond is with Lyndon Property Insurance, 10/16/2001. The liability insurance is with Marsh USA, Inc., and expires 8/13/2003. NPDES permit # is 000045080, 8/31/2002, and extension letter has been received from water quality. MSHA # is OS-04712. The 2001 Annual Hydrology Report was submitted. Certifications: Haul road 8/23/02, pond 6A 8/23/02 (as built), Pond 7BB 4/11/02, Pond 8A 2/6/02, Pond 9 12/17/01, Pond 9A 12/17/01, and Pond l0A 1/10/02. Inspections: Pond inspection for the 2"d quarter, Fill 7 first quarter with photos, Fill's 8 and 9 second quarter. Pond 9A - is at the bottom of Fill #9. Side slopes on part of the pond are nearly vertical. The permit design and as-bunt's show a 1:1 side slope. The second from the bottom terrace drain to the down drain is starting to blow out. Pond 8 -The access road on the west side is dumping water into the pond very near the inlet. West and east sides are nearly vertical. The gas line road built in the spring before the pond has created an impounded area behind pond 8. Kent believes it to be about 17' high. There is about 2' of water behind it and water is perking through the toe. Pond 6A -The small access road on the southeast corner routes some runoff and rills are forming. The east side of the embankment is ponding a small amount of water between the crest and the undisturbed area. The large topsoil pile to the ENE of the pond needs to have the area below the ditch seeded and mulched.