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III. COMMENTS - COMPLIANCE <br />Below are comments on the inspection. The comments include discussion of <br />observations made during the inspection. Comments also describe any <br />enforcement actions taken during the inspection and the facts or evidence <br />supporting the enforcement action. <br />This was a complete inspection conducted by Kent Gorham of the Colorado <br />Division of Minerals and Geology. At this time, the operation has yet <br />to commence coal mining activities. <br />Availability of Records <br />The public copy of the mine records is kept at the Tri-State railyard <br />office on the west side of Trinidad along Highway 12. All required <br />records were found in compliance and as detailed on the attached <br />checklist. <br />Hydroloaic Balance <br />The following hydrologic observations were noted during the inspection: <br />Livestock ponds PCWC-1, 2, 3, 6, and 7 all were at least ~ full of <br />water. <br />Windmill WMCWC-1 was operating and the tank was full and overflowing <br />water. <br />Groundwater monitoring sites MW-1A, MW-2, and CWC-2 appeared in good <br />condition. Wells were found capped and locked. Silt fence material was <br />cleaned up and removed at MW-2. <br />Lorencito and Cow Creeks were flowing small amounts of water, primarily <br />from ground water discharge. <br />Gas development continues at the property. Improved roads now exist <br />well back into the property nearly to monitoring well location MW-1A. <br />No coal mining activity was noted. <br />Page 3 <br />