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III. COMMENTS -COMPLIANCE <br />Below are comments on the inspection. The comments include discussion of observations made during <br />the inspection. Comments also describe any enforcement actions taken during the inspection and the <br />facts or evidence supporting the enforcement action. <br />This was a partial inspection conducted by Tom Gillis of the Colorado Division of Minerals and Geology. <br />With the operator's consent, this report was issued from the Durango office. Skies were cloudy and the <br />site was fairly wet as a result of significant rainfall during the past few days. <br />Hydrologic Balance <br />Both sediment ponds were inspected and found to be functioning properly. The operator estimated that <br />approximately 2.5 feet of coal fines & other sediments have accumulated in the larger pond following a <br />major cleanout done several months ago. <br />Processing Waste <br />Placement of waste material in the refuse pile appears to be in compliance with the approved design <br />parameter for maintaining positive drainage off the top of the pile. <br />General Mine Plan Compliance - Proaosed new mine area (current amendment) <br />The proposed new mine area was observed during the inspection and no problems were noted. It appears <br />that the new area will provide much more room for facilities, equipment, and drainage control structures <br />than the current site. <br />