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March 31, 2000 <br />Lodestar Energy, inc. <br />C/O Mr. Jim Stover and Associates <br />2768 Compass Drive, Suite 101 <br />Grand Junction, CO 81506 <br />Munger Canyon Mine, special focus oversight inspection <br />McClane Canyon Mine, complete oversight inspection <br />March 29, 2000 <br />Participants: <br />Dan Matthews, Colorado Division of Minerals and Geology (DMG) <br />Dave Jenkel, permittee representative <br />Henry Austin, Office of Surface Mining (OSM) <br />1 participated in the above oversight inspections on March 29, 2000. These inspections were <br />selected by thejoint DMG/OSM Oversight Evaluation Team (Team) to be conducted during <br />Evaluation Year 2000 (October 1, 1999 through September 30, 2000.) In addition to the above <br />participants we also spoke to Walter Whitledge, mine manager at the McClane Canyon Mine. <br />Weather conditions were cool and fair with limited, intermittent rain showers the day before the <br />inspection resulting in wet ground conditions in places, to dry ground conditions on other aeeas <br />of the two mines inspected. There was no real evidence of surface water runofTon either site, <br />but some small areas of water ponding in roadside sumps, etc. This narrative will report on our <br />inspection findings for both the oversight inspection categories noted above. <br />Mr. Matthews and I began the inspection at the DMG/Grand Junction Field Office. We discussed <br />the two oversight inspection categories and held general discussions for both mines. The Team <br />selected "Temporary Cessation" as a special focus category of mine sites to be inspected during <br />the current evaluation year. The Munger Canyon Mine is in temporary cessation. The Team has <br />also agreed to conduct a limited number of complete, joint, oversight inspections each <br />evaluation year, and the McClane Canyon Mine was selected for this current evaluation year. <br />We began the inspections at the Loma coal loadout site, which is included and bonded in the <br />Munger Canyon permit area. Mr. Jenkel joined us at the site and we explained the Mature of our <br />inspections to him. The loadout is inactive and the railroad siding at this location has been <br />removed by the railroad. Drainage control at the site is adequate and Mr. Matthews identified <br />two minor maintenance locations (western diversion berm and a silt fence) as well as a <br />knapweed infestation which needs to be treated. There are a few small coal material piles on the <br />site which should be removed while the site remains inactive. There does not appear to be any <br />reasonable, foreseeable plans to reactivate this site and Mr. Matthews will address the necessity/ <br />future plans/maintenance or reclamation for this site during the July 2000 midterm permit <br />review. <br />