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(Page 4) MINE ID # OR PROSPECTING ID #: M-ia~s-n5~ INSPECTION DATE: >>JTin~ INSPECTOR=S INITIALS: TQS The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. PROBLEMS/POSSIBLE VIOLATIONS AND 1. The fuel depot piping system contained a leak of diesel fuel and the extent of contamination was unknown. The operator could not verify whether groundwater within the affected land had or had not been adversely affected as a result of the fuel leak. CORRECTIVE ACTION: Submit a revision which describes the extent of diesel fuel contamination and a plan for proper disposal of the contaminated soil, The revision should also verify whether groundwater has or has not been adversely affected as a result of the leak and detail how leaks will be prevented and contaminated soils handled in the future. This problem may be incorporated into the pending amendment application (see PB Z). This incorporation or submittal must be received at Division Offices within 60 days. 2. The operator has excavated within 200' of gas structures in several locations within the affected area in the absence of a notarized agreement with the owner(s) of the structure or an adequate engineering evaluation (stability analysis), as required by Rule 6.4.19. The structures include gas wells, associated processing facilities, gas lines, and fuel storage tanks in the southern half of the Tract A -Active Extraction Area. CORRECTION DATE 12/19/03 PB or PV : PB TOPIC(Sl: HB 01/19/04 CORRECTIVE ACTION: Incorporate one of the following corrective actions into the pending PB or PV : PB AM-1 amendment application within 60 days: 1) a notarized agreement between VCI and the TOPIC(S): MP person(s) having an interest in the structure, that VCI is to provide compensation for any damage to the structure, or 2) an appropriate engineering evaluation (stability analysis) that demonstrates that such structure shall not be damaged by activities occurring at the mining operation, or reclamation activities, as proposed, will have °no negative effect" on their utility, 4) a plan for backfilling the excavation to provide a buffer of at least Z00' from the pit edge to the structure, or S) a plan for other mitigation satisfactory to the owner(s) of the structure.