INSPEC36107

• Permit No: C1981013
• IBM Index Class Name: Inspection
• Doc Name: Inspection Report
• Inspection Date: 10/24/2006
• Media Type: D
• Archive: No

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 bond release inspection conducted by Kent Gorham and Sandy Brown of the
Colorado Division of Reclamation, Mining, and Safety (Division). Basin Resources, Inc.
submitted an application for Phase III bond release on September 20, 2006 for 57.1 acres of
reclaimed lands in Sections 28, 29, and 30, T33S, R67W of the 6th principle meridian. Also
included in the request is a liability release for all lands overlying underground workings. A
Phase I, II, and III bond release is also requested for two reclaimed sediment ponds.
Excluded from the request are 1.2 acres of disturbance at the site known as the NW-1
ventilation shaft.
The Division currently holds a corporate surety bond in the amount of $141, 892.49. The
applicant has requested that $105, 358.49 be released if this request is approved.
Also in attendance were Ron Thompson, representing Basin Resources, Inc; Quentin
Springer, representing the Colorado Division of Wildlife; Carl Chavez and Jeff Lambeth of
XTO Energy; and Vince Vigil representing Las Animas County. Participating for a portion of
the inspection dealing with their property to the east were John Toupal and his son Bill
Toupal. Ground conditions on this day were dry and the weather was cool.
Parties in attendance met along the main access road at the former railroad crossing at 9
am. After brief introductions and exchange of contact information, Inspector Gorham
reviewed previously approved bond release actions at this site and briefly discussed the
bond release process and the right of parties with a valid, legal interest to request an informal
conference. Parties were also notified of their right to request a formal hearing by the Mined
Land Reclamation Board following a proposed decision by the Division. Prior to beginning
the inspection, Inspector Gorham asked for specific objections. No specific objections were
voiced by any of the parties in attendance at that time.
The inspection began immediately east of our meeting location at ground water well location
218. This location consists of two cased holes, one of which was previously filled with
cement grout by Basin Resources. A large circular area devoid of vegetation exists for a
radius of about 30 feet around this location. The Division believes that methane may be
seeping up the annulus of the well casings causing the vegetation die-out. Abandonment of
the two wells and reclamation of the site is not complete at this time but is required prior to
final bond release.
We briefly observed the fenced rangeland reference area on the hillside south of our
location. This reference area was used for establishing the revegetation success standard
for Golden Eagle Mine and, it is also the reference area for the New Elk Mine permit #C-81-
012. It may be prudent for the permittee of the New Elk mine to consider permitting a new
reference area closer to the New Elk site.