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III. COMMENTS -COMPLIANCE Elk Creek C-1981-022 Pg 1/3 26 March 2007 ~~ Below are comments on the inspectiou. 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 of the Elk Creek and Sanborn Creek Mines conducted by Jim Stark of CDRMS. The inspection was conducted on 26 March 2007. Jim Kiger of Oxbow Mining, LLC accompanied me on the inspection. The mine was producing coal at the time. The weather was cool and sunny and the ground was mostly dry. Availability of Records: All of the necessary records were available in the mine office as required. Please see the DRMS Availability of Records form at the end of this inspection report for more detailed information. Signs and Markers: All of the necessary signs were in place as required. All of the off-site locations that were visited had the appropriate mine ID and disturbance boundary markers as required. Roads: -The mine access road is a paved road. The road is well maintained and in good condition. - The east yazd haul road was dry and appeared to be stable and well maintained at the time of the inspection. There were no rutting or erosional problems noted on the road at the time of the inspection. - The road to the Elk Creek portals and facilities area was dry and appeazed to be stable and well maintained at the time of the inspection. No erosional problems were noted on the road at the time of the inspection. - The haul road to the West Valley Fill was wet and muddy at the time of the inspection. The road appeared to be stable and there was no rutting on the road. No erosional problems were noted on the road at the time of the inspection. - The haul road to the II-West Valley Fill was inaccessible due to mud at the time of the inspection. - The back entrance to the mine from Highway 133 was dry and appeared to be stable at the time of the inspection. This road is primarily used to access the Sanborn Creek gob vent boreholes and the mine when a train is blocking the main entrance. - The road up Hubbard Creek was dry and appeazed to be stable. There was some rutting on the road due to traffic over the winter. This road is used by OMLLC, Bowie Resources, hunters and outfitters and the Hotchkiss Ranch so it sees a fair amount of winter traffic. OMLLC usually blades the road in late spring. No erosional problems were noted on the road. - The road to the Hubbazd Creek fan was dry and appeazed to be stable at the time of the inspection. There was no rutting on the road and no erosional problems were noted. Hydrologic Balance: - Pond A contained water approximately two feet below the top and was not discharging at the time of the inspection. The pond is an incised pond. The pond was stable at the time of the inspection. - Pond B contained water approximately three feet below the emergency spillway at the time of the inspection but was not discharging (discharge is through a gated valve below the water level). The Operator was pumping water from Pond D into Pond B to increase the capacity of Pond D. The embankment was well vegetated and appeared to be stable. No erosional problems were noted on the pond embankment. The emergency spillway was stable. - Pond C is a concrete dam below the West Valley Fill. The dam appeazed to be stable at the time of the inspection. The pond was dry at the time of the inspection.