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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 complete inspection conducted by Kent Gorham of the Colorado Division <br />of Minerals and Geology. This former underground mine will be used for processing <br />and loadout of coal produced from the Lorencito Canyon Mine, (#C-96-084). At this <br />time. the mine is in Temporary Cessation. Ground conditions were dry and the <br />weather was warm and mild. Ron Thompson of Peak Project Management represented <br />Picketwire Processing LLC during the inspection. <br />Availability of Records <br />The public copy of the mine records is kept at the Tri-state railyard office on <br />the west side of Trinidad. All required records were found as detailed on the <br />attached checklist. <br />Signs and Markers <br />The operator has changed the phone number on the mine identification sign to 719- <br />846-2427. This is the Tri-State railyard office phone. <br />Hydrologic Balance <br />Dry conditions prevail at this site. All ponds and containments were found dry or <br />holding a small puddle of water with one exception. Pond 8 (RDA) held water up to <br />about three feet below the drop inlet primary riser. All ponds appeared in good <br />condition. Ditches and culverts were found in good condition <br />Processing Waste <br />Two refuse piles exist at this site. The Refuse Disposal Area (RDA) is located <br />north of Highway 12. Four benches have been completed at this disposal site. <br />Drainage on the operational surface is directed about equally between the east and <br />west sides of the pile. The 100-year ditch above the pile was found in good <br />condition. Armored downdra~ns appear to be working well with no sign of damage or <br />shifting due to occasional high flows. <br />General Mine Plan Compliance <br />Crews are working on the railroad across the mine site. Power has been restored <br />to the substation east of the pre plant. Crews were also noted fencing the <br />boundary with the State land to the south. The operator is preparing the site in <br />anticipation of coal production from Lorencito Canyon within the next 4-6 weeks. <br />3 <br />