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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. This inspection began on July 13 with a check of records at the Routt County Courthouse. It continued with inspection of the permit area on July 14. Carey over items from previous inspections included: Work was incomplete on the reclamation of the tipple area ponds. Backfill material was still stored on a road to the site to complete the work. The padlock on the North Haul Road would not open. AVAILABILITY OF RECORDS See the DMG AVAILABILITY OF RECORDS check sheet at Attachment 1. Copies of the following documents were not found on file: the current (November 16, 2001) Colorado Division of Minerals and Geology (Division) Permit (Mining Permit -Coal) C-1980-001 (the findings document in support of the decision to renew the permit was on file); the Routt County Special Use Permit(s) [reference page 2.03-37 of the Permit Application Package (PAP)]; the report of the June 2004 Division inspection, and the 4`h Quarter 2003 and Is` Quarter 2004 quarterly pond inspection reports. SIGNS AND MARKERS The permit number is no longer legible on the mine and permit identification sign on the Skyline access road from Routt County Road 27 (Routt County Road 44Z). It needs to be refurbished. ROADS The roads were in good shape. Access was available through the North Road gate. Backfill materials had been cleared from the road in the vicinity of the former tipple sediment ponds. The combination locks had been removed from the gate to the Skyline access road, thus the Division does not now have access into the permit area via this southern route. HYDROLOGIC BALANCE The reclamation of the lower sediment pond in the tipple area is incomplete as a remnant remains. Completion of reclamation at this lower pond awaits resolution of requirements of Routt County by the operator. There was a little water in, but no discharge from, this former Sediment Pond 4. The upper three former ponds have been filled in to provide positive drainage. Check dams (the string of pearls) CK 1 and 2 have silted in. CK 3, 4, 5, and 6 act as check dams (eroded through). The other CK structures retained water. There was no dischazge from the last CK impoundment, and there was no discharge between CK impoundments. The West Ridge, Center Ridge, and Moffat impoundment structures were in good repair. There was no discharge from the West Ridge pond. Measured pazameters of water quality in this pond were T = 29.5°C, pH = 10.1, and conductivity = 2090 µohm. There was a 7-gallon/10 seconds (0.09 cfs) discharge from the Center Ridge Pond. Measured pazameters of dischazge water quality were T = 25.2°C, pH = 8.9, and conductivity = 2500 µohm. July 19 2004, page 3 of 6 pages 3