INSPEC30449 - Laserfiche WebLink

Home Browse Search

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. This was a complete quarterly inspection of the Munger Canyon Mine site and the Loma Loadout. The loadout was inspected at 1 p.m. and the mine site at approximately 2:30 p.m. Operator contact Rodney Head was present during the mine site inspection but not during the loadout inspection. Weather was clear and mild. One item of concern was discussed with operator representatives Walter Whitledge and Rodney Head prior to the mine site inspection. The issue discussed was the pending permit transfer from Lodestar Energy Incorporated (LEI) to Central Appalachia Mining (CAM). The federal coal leases have been assigned to CAM, as a consequence of the LEI bankruptcy proceedings, but the lease assignments have not been approved by BLM. The Division may not be able to approve the permit transfer until BLM approves the lease assignment to CAM BLM has not approved the assignment, because of a royalty payment default by LEI. The operator representatives stated that CAM was willing to pay the required amount, but they had received conflicting information from Minerals Management Service (MMS) regarding the amount owed. Following the inspection, I contacted Karen Purvis of the BLM State Office, Solid Minerals Branch. Ms. Purvis stated that she also had received conflicting information from Minerals Management Service (MMS) regarding the royalty amount that would need to be paid. She indicated that the royalty issue was limited to Lease #0125439, and she further stated that the issue could be resolved in one of two ways; CAM could pay the required amount or CAM could refuse to pay and the amount could be taken from the lease bond. I passed this information along to my superiors in the Denver office. Availability of Records Required records were on file at the mine office and up-to-date through the 3r° Quarter, 2003. See attached DMG AVAILAB/L/TY OF RECORDS form. Signs and Markers Mine I.D. signs were in place at the mine site and Loma Loadout, and contained required information. The signs will need to be updated to provide new permittee information upon approval of the pending permit transfer from LEI to CAM. Roads The mine site access road had been recently graded, and was in good condition. All culverts and culvert outlet structures were properly maintained and functional. Hydrologic Balance Mine site SAE-1 rock filter/silt fence structure was properly maintained and functional. The depression up-gradient from the rock filter was dry. Minor re-grading had been performed