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~ay e 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. during this and previous inspections, the reclaimed areas have been restored to the approximate original contour of the pre-mining landscape. The present surface configuration achieved by backfill and grading of the mined areas closely resembles the general surface configuration of the land prior to mining. Reclaimed areas blend in well with existing undisturbed landscape. Comparison of the post-mine contour map (Exhibit 12-9) with USGS 7.5 minute Quadrangle Maps of Mount Hams and Milner, Colorado indicate that the major pre-mining drainages were reconstructed in the appropriate locations and additional drainage density was added to the post- mining landscape by constructing additional post-mine channels. Prior to this inspection the 2006 Rill and Gully Survey was reviewed and all azeas identified on the survey were inspected in June (see inspection report date 06/27/06). One feature is identified as a sump neaz the top of the former Wolf Creek Pit. This appeazs to be a blast hole that did not get properly backfilled. It is located along the fence line due south of PM-6B. It is about 18 inches wide and appeazs to be approximately 20 feet deep. As discussed with SCC, this will be repaired by backfilling. One other location is the slide area south of the PECOCO Pond. A seep is evident in the same general vicinity of the slide and these features aze likely associated with the location of the former highwall. Groundwater dischazge from the highwall may have caused the slide. As shown in Photogaph No. 6 there is some exposed soil and vertical relief in the slide area. There is an older slump above the location of the recent slide that appeazs to be stabilizing. An approximate slope of 34% was measured perpendicular to the slide from the base of the slope up to the older slump azea. We discussed options with SCC for stabilizing and/or monitoring the slide. SCC should propose a plan for repairing the slide damaged azea. Both the sump blast hole and the slide azea near the PECOCO Pond are considered maintenance items that will need to be repaired. Neither of these features will be excluded from Phase I bond release but they will continue to be monitored and repairs made as needed. One significant area of concern was identified and this will be referred to as the East Wadge Pit area. The East Wadge Pit was one of the last azeas to be reclaimed at Seneca II Mine. It includes all disturbed ground east of Road C above and below the location of the fenced shrub plot and surrounding shrub plot study area down to and including Post-Mine Channels PM-8a, PM-8b, and PM-8. A diversion ditch was installed as an alternative sediment control feature above the shrub study azea to protect the azea from erosion and to divert water towazds Post-Mine Channel PM-8. The inspection of this area began above the diversion and proceeded down PM-8 to the South Road and then back up PM-Sa and PM-8b. The following problems were noted with regazd to surface water runoff and sediment control and overall stability of the East Wadge Pit. A lazge gully has formed above the diversion, approximately 30 feet long and 2.5 feet deep. Rills aze present above and to the east of diversion. Another significant gully has formed from the