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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. This was a complete inspection conducted by Kent Gorham of the Colorado Division of Reclamation, Mining, and Safety (Division). Deserado is an active underground mine operating in the B seam using the longwall mining method. Snow remains mostly on north facing slopes and shaded areas. The weather on this day was sunny and mild. Scott Wanstedt of Blue Mountain Energy accompanied me on this inspection. Availability of Records The public copy of the mine records are kept in the office area of the change house building. Records were found current and in compliance with one exception; the public copy of the liability insurance certificate showed an expired date of December 30, 2006. On March 15, 2007, a valid insurance certificate was emailed to the Division showing insurance in effect for calendar 2007 in compliance with Rule 2.03.9. The detailed results of the records inspection can be found on page 2a of this report. Roads The haul road was in use by large dump trucks hauling refuse to the refuse disposal area. No dust or particulate emissions were noted. Straw bales in the ditch between the paved facility road and the haul road appear to be effective in trapping sediment from road runoff especially in the steep section. Generally county roads are used to access outlying areas for the mine. Hydrologic Balance Ponds around the site were visited and observations are as follows; DP-1 at the D portal (main facility area) discharging clear, 20 gpm estimated. PP-1 and PP-2 no discharge, holding small amount of water RP-1 at the RDA below reclaimed refuse pile RP-1, dry, spillway good RP-2/3, RP-4, RP-5 at the active RDA, all holding water, no discharge RR-1 at the loadout, dry SS-1, SS-2 at the slot storage, dry HSL-1 at the landfill, dry AL-1 at the raw water lagoon, frozen, full Runoff from the winter snowpack appears to have been minimal and occurred without incident. Ponds appear effective at controlling any excess sedimentation from the disturbed area.