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LODESTAR ENERGY, INC. McLANE CANYON MINE IMPOUNDMENT YEARLY INSPECTION In accordance with Rule 4.05.9(14), all impoundments shall be inspected at least yearly to determine if the impoundment has been maintained as designed, and in accordance with the approved plan and the applicable regulations. This yearly inspection is for the impoundments located at the McClane Canyon Mine. On March 26 & 28, 2002, I performed the required yearly inspections. I, J. E. Stover, have a wide variety experience in the design and construction of earth fill embankments. Nothing was observed during the inspection that would indicate the ponds have a potential for failure. There was no appearance of erosion, instability, structural weakness or other hazardous conditions. There are no required monitoring procedures or instrumentation. There are no aspects which might affect stability and there is no required maintenance. The sediment pond was dry. The topsoil and excess material stockpile impoundments were dry. The office area impoundment was muddy. No discharge was occurring from any of the impoundments. The inside slopes of the sediment pond were flattened to approximately 2H:1 V during the first quarter 2002. The required water capacity of the sediment pond is 0.54 A-F (ref. PAP Section 2.4.1). There is no specific sediment capacity defined for the pond. The actual size of the pond exceeds the required capacity listed in the permit. The sediment pond has the following estimated capacity considering the flattened side slopes: POND CAPACITY -ACRE FEET Water Sediment Total 0.57 0.42 0.99 Appendix M lists three small area exemptions where run-off is controlled by a sediment trap. The sediment traps are now categorized as impoundments. SAE-1 -The office area impoundment has a required capacity of 1400 cubic feet. The actual size of the impoundment meets or exceeds the required capacity. SAE-2 The topsoil impoundment has a required capacity of 375 cubic feet. The actual size of the impoundment meets or exceeds the required capacity. SAE-3 The excess material {rip rap) stockpile impoundment has a required capacity of 750 cubic feet. The actual size of the impoundment meets or exceeds the required capacity. To the best of 1v~yijgdge and belief, the impoundments at the McClane Canyon Mine are maintained~~~s~rfetic'$f~ in accordance with the approved plan and applicable regulations. i * I G ~ Z d2_ ~,, . James . Std Date ~~~7lgrado Prof~~s``(~nal Engineer •.~$~h$,ltgK•l°Id. 19230