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III. COMMENTS -COMPLIANCE <br />Below are comments on the inspection. The comments include discussion of observations made during <br />the inspection. Comments also describe any enforcement actions taken during the inspection and the <br />facts or evidence supporting the enforcement action. <br />This was a partial inspection conducted by Tom Gillis of the Colorado Division ofMinerals and Geology. <br />With the operator's consent, this report was issued from the Durango office. Skies were cloudy and the <br />site was fairly wet as a result of significant rainfall during the past few days. <br />Hydrologic Balance <br />Both sediment ponds were inspected and found to be functioning properly. The smaller pond appears to <br />have accumulated a fair amount of coal fines in recent months but does not appear to need cleanout at this <br />time. Collection ditches were clear, including the small diversion ditch located at the base of the cut slope <br />on the north side of the gob pile. <br />Processing Waste <br />The waste pile showed no evidence of structural instability. Grading of the pile surface to ensure positive <br />runoff from the face of the pile appeazs adequate - no depressions or flat spots noted during the inspection. <br />