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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 Kent Gorham of CDMG. Ron Thompson of <br />Peak Project Management represented Picketwire Processing LLC during the <br />inspection. This former underground mine is used for processing and loadout of <br />coal produced from the Lorencito Canyon Mine (~{C-96-084). Ground conditions on <br />this day were damp due to recent rains and the weather was warm and mild. <br />Hydrologic Balance <br />Sediment ponds were visited and the following observations noted; <br />Pond 7 was full to the lowest set of holes and discharging slightly. The <br />discharge was clear and sampling by DMG did not appear warranted. Pond 5 held a <br />small amount of water but no evidence of recent discharge was noted. Pond 4 also <br />held a small amount of water but had not discharged any time soon. Containments <br />near the conveyor also held water. All ponds and containments visited appeared in <br />good physical condition. <br />General Mine Plan Compliance <br />Coal loading and crushing activities was observed at the clean coal stockpile. <br />The operator was filling coal silos for an upcoming unit train shipment. <br />Air Resource Protection <br />Dust generated by the loading and crushing activity seemed minimal when compared <br />to previous inspections. Recent rains are likely responsible for the reduction in <br />fugitive dust. Wind on this day was easterly and qualitatively rated as mild. <br />Overall, the site appeared in good condition. <br />3 <br />