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LODESTAR ENERGY, INC. <br />McLANE CANYON MINE <br />IMPOUNDMENT YEARLY INSPECTION <br />In accordance with Rule 4.05.9(14), all impoundments shall be inspected at least yearly to <br />determine if the impoundment has been maintained as designed, and in accordance with the <br />approved plan and the applicable regulations. This yearly inspection is for the impoundment <br />located at the McClane Canyon Mine. <br />On March 17, 2004, I performed the required yearly inspections. I, J. E. Stover, have a wide <br />variety of experience in the design and construction of earth fill embankments. Nothing was <br />observed during the inspection that would indicate the pond has a potential for failure. There <br />was no appearance of erosion, instability, structural weakness or other hazardous conditions. <br />There are no required monitoring procedures or instrumentation other than monthly and yearly <br />inspections. There are no aspects which might affect stability and there is no required <br />maintenance. The sediment pond had water standing within 1.4-feet of the primary spillway at <br />approximate elevation of 5459.9. <br />The inside slopes of the sediment pond were flattened to approximately 2H:1 V during the first <br />quarter 2002. There has been little to no change in the side slopes during the ensuing two <br />years. There is evidence of sediment buildup during the year at the inlet to the pond. It is not <br />possible to determine the amount of sediment in the pond because of the water standing in <br />the pond. The required water capacity of the sediment pond is 0.54 A-F (ref. PAP Section <br />2.4.1). There is no specific sediment capacity defined for the pond. The actual size of the <br />pond exceeds the required capacity listed in the permit. <br />The sediment pond has the following estimated capacity: <br />POND CAPACITY -ACRE FEET <br />Water Sediment Total <br />0.57 0.32 0.89 <br />To the best of my <br />Canyon Mine F~as <br />and applicat~t@} <br />and belief, the impoundmenUsediment pond at the McClane <br />ained as designed and in accordance with the approved plan <br />oa <br />a <br />i }!7 ./ <br />i 3` <br />~~- at <br />Colorado <br />