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III. COMMENTS -COMPLIANCE <br />Below are comments on the inspection. The comments include discussion of observations <br />made during the inspection. Comments also describe any enforcement actions taken during <br />the inspection and the facts or evidence supporting the enforcement action. <br />This was a partial inspection conducted by Tom Kaldenbach of DMG. Henry Barbe represented the <br />operator. The weather was warm and and the ground was dry. The most recent precipitation was a <br />heavy rain that fell about a week before the inspection. <br />Hydroloaic Balance <br />Inslopes, embankments, and spillways appeared to be in good repair at the following ponds: <br />SG-1, MB-1, MB-2R, MB-3, MB-5, and the two RPE ponds. The water level in each pond was far <br />enough below the emergency spillway to hold a ]0-yr, 24-hour event. <br />Support Facilities <br />Shaft 1 and 2 areas -Everything was in good order here, including the upper diversion. <br />Shaft 3 area -SAES (around the electric borehole pad and degas well pad) appeared well-maintained <br />and showed no signs of excessive erosion. <br />Backfill and Gradine, Revegetation, General Mine Plan Compliance <br />Panel 74 drillsites -The operator was busy installing silt fences, seeding, and mulching the SAES at <br />these drillsites. A rig was drilling hole 1407. The drillsite was neat and orderly. Land disturbances at <br />the numerous drillsites inspected appeared to be confined to small areas immediately around the <br />drillsites. Mudpits at each site have been backfilled. Reclamation appears to be occurring <br />contemporaneously with drilling operations. Roads were in good condition. <br />Thennal Event Area -This area was seeded and mulched this summer. Silt fences have been installed. <br />No rill or gully formation was evident. New vegetation has been grazed by cattle, but is holding up <br />well. <br />Page 3 <br />