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III. COMMENTS -COMPLIANCE Below are commenu 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. • Jerry Nettleton (Nettleton) of Twentymile Coal Company (Twentymile) accompanied Byron Walker (Walker) of the Colorado Division of Reclamation, Mining and Safety (Division) during this inspection of the Foidel Creek Mine. Other persons met were Dave Wallace (Wallace), Brian A. Watterson (Watterson), Scott Cowman, and Chazles Thompson, of Twentymile; and Bill Atkinson of the Colorado Division of Wildlife. This inspection was initiated by a telephone report, received the morning of 12 September 2006, followed by an e-mail, of a dischazge of underflow thickener from the coal preparation (wash) plant into Sedimentation Pond E, and a resultant dischazge from Pond E into Foidel Creek. Byron G. Walker (Walker) left Denver the afternoon of 12 September 2006. When it became appazent that Walker would not arrive at the Foidel Creek Mine site until 18:00 hours or later, Jerry Nettleton was contacted by mobile cell telephone, and arrangements made to initiate the inspection azound 08:45 the morning of 13 September 2006. Walker picked up water sampling supplies at 08:00 from ACZ Laboratories in Steamboat Springs, and arrived at the Foidel Creek site at 8:45. A number of documents aze referenced in this report. These documents and the laboratory test results will be place on file with this inspection report. GENERAL MINE PLAN COMPLIANCE PROCESSING WASTE The general mine plan is to transfer undertlow thickener (slurry) (a process waste) in an underground pipe from the coal prepazation (wash) ~lant to a borehole down into the underground mme, and to dispose of the slurry in abandoned workings of the Eastern Mining District [Permit Application Package (PAP) page 2.05-30]. A "T" section of the buried pipe wore through and failed (Wallace). This "T' of the buried pipe was at the base of an access manhole near the inlet to Sedimentation Pond E. The manhole filled, and overflowed, with slurry. The overflow is evident in the pictwe to the right. The time of rupture is unknown (probably sometime between the 6"' and 11 "' of September). The time slurry started to flow into Sedimentation Pond E (Pond E) is also unknown. However, it was detected on the morning of 11 September 2006. Transfer pumping was halted, and repairs made to the line (including excavation of the filled-in manhole, repair of the pipe, and resetting of the manhole (Wallace). The dischazge of slurry into Pond E (see picture to the right) and into Foidel Creek were not in mpliance with the General Mine Plan as ~rmitted. C-1982-056. CP Inspection of September 13, 2006 Page 3 of 8 pages. BGW