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III. COMMENTS -COMPLIANCE Colowyo C-1981-019 3 October 2005 Pg 1 / 2 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 partial inspection of the Colowyo Mine conducted by Jim Stark of CDMG. The main purpose of this inspection was to meet and go on a field trip regarding the proposed Collom project. Other attendees included Tay Tonoai and Colowyo staff, Sandy Brown, Mike Boulay, Kent Gorham and Dan Mathews of DMG, representatives from DOW, Cedar Creek Associates and Maxim Technologies. The weather was cold and raining and the ground was (obviously) wet. The Collom project is a new surface mine that the Colowyo Coal Company has proposed and is in the process of collecting baseline data. The Collom project is covered by Notice of Intent X-2004-109-10. The original NOI included 39 exploration holes. CCC submitted amendments 1 and 2 to the NOI for five and three additional sites, respectively. CCC was still performing exploration activities at the time of the meeting and field trip. The day began with a meeting at the Colowyo office to discuss the status of the project. The meeting covered all phases of the project including the proposed permit boundary, mining areas, project schedule, geology, hydrology, wetlgnds, erosion and sediment control, soils, alluvial vglley floors, vegetation, air quality wildlife and archaeology. Specialists in each discipline discussed how the project was progressing and what data was being collected. Amore detailed write-up regarding the meeting is available in a letter to Tay Tonoai of Colowyo. Following the meeting a field trip to the Collom site was conducted. The weather was cold and rain was coming down pretty hard, making it difficult to access many of the Collom areas. We first visited the area where CCC has proposed to start the box-cut, which is either the Phase 1 area or the "I-Pod" (although there is no firm mine plan at this time). It is estimated that the initial box-cut will generate approximately 50 million cubic yards of spoil. This area and the proposed access to the mine will be along Jubb Creek on the County Road. Along with the box-cut location we were able to see the proposed excess spoil pile location in the upper East Fork of Collom Creek as well (although there are also other sites being evaluated). Colowyo has estimated that the volume in the excess spoil pile (depending on where, exactly, the put the initial box-cut) will be 50-150 million cubic yards.