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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. General Comments This was a partial monthly inspection of the surface facility areas at the McClane Canyon Mine. The inspection was conducted by Dan Mathews of the DMG Grand Junction Field Office, accompanied by operator representative Rodney Head. Weather was clear and cool, surface soils were moist from recent precipitation. Lodestar Energy, Inc. (LEI) is the official permittee. However, Central Appalachia Mining, LLC (CAM) has been directing and funding operations for some time. A proposed decision to approve a Permit Transfer/Succession of Operations from LEI to CAM was recently issued by the Division, but the decision is not yet final. One enforcement action (NOV CV-2004-005) was issued based on this inspection. The NOV was issued to Central Appalachia Mining, LLC/ Lodestar Energy, Inc., due to the operational circumstances and status of the permit transfer noted above. The NOV and associated facts and observations are described below. NOV CV-2004-005 CV-2004-005 was issued for "Failure to construct and/or maintain McClane Canyon Mine sediment pond embankment as necessary to ensure integrity and stability of pond embankment". The NOV was issued based on observations of embankment instability evidenced by a semi- circular shaped area of settling and/or movement on the top and outslope of the sediment pond embankment. The slump area as defined by cracks and or scarps along the top and sides of the feature appeared to extend from the approximate mid-line of the top of the embankment to the toe of the embankment near the primary discharge pipe outlet. The slump feature was approximately 60 feet wide across the middle portion of the embankment. The primary crack along the top of the embankment was approximately 4 inches wide at the surface and appeared to be in excess of two feet deep. Along the south margin of the slump there was a well defined scarp running down the embankment outslope, approximately 14 inches in height. The north side of the slump was defined by a crack approximately 1"wide at the surface running down the embankment outslope. Several digital photos of the embankment and sediment pond were taken during the inspection and are attached to this report. Photos 1440 through 1442 are of the slide area taken from various locations south and west of the embankment. Water visible near the toe of the embankment adjacent to the primary discharge outlet is from discharge via pump and hose, which had been initiated by the operator prior to the inspection to facilitate embankment repair. The primary slump feature visible in these photos is the scarplcrack along the south margin on the outslope of the embankment, and the main crack along the top of the embankment. Photo 1443 was taken from the center top of the embankment. The primary feature shown is the lower segment of the scarp, along the south side of the slump (hard hat for scale). Photo 1445 shows the primary crack along the top of the pond