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November 21, 2007 <br />Hayden Gulch Terminal, Inc. <br />C/o John Weinman <br />PO Box 772996 <br />Steamboat Springs, CO 80477 <br />Hayden Gulch Loadout <br />November 15, 2007 <br />Complete, oversight inspection <br />Participants: ~ - <br />Daniel Hernandez, Colorado Division of Reclamation, Mining, and Safety (DBMS) <br />John Weinman, Hydro=Environmental Solutions, Inc. <br />Christine Belka & Henry Austin, Office of Surface Mining (OSM) <br />We conducted a complete inspection of the Hayden:Gulch Loadout on Novemberl5, 2007. <br />Mr. Hernandez began the inspection with a review ofpermitting, inspection, and environmental <br />monitoring records for the loadout at the Hydro-Environmental Solutions, Inc. office in <br />Steamboat Springs. Mr. Weinman serves as a consultant for the permittee. The Temporary <br />Cessation of operations approval is dated August 31, 2001. The most recent OSM oversight <br />inspection here was in 2000. <br />Required records for the operation were found to be complete; and we did not review any <br />monthly, quarterly, or other required environmental monitoring reports or permit conditions <br />found to be in non-compliance. Records reviewed included the following: DBMS mining permit <br />that expires May 22, 2008.; the liability insurance certificate is approved through November 1, <br />2008; there are two bonding documents that total $1,084,161.00 with the most recent bond rider <br />approved April 30, 2007. The most recent reclamation cost estimate is $978,831.00 completed in <br />2005. The 2007 Annual Reclamation Report is on file; the Colorado NPDES Permit renewal was <br />administratively extended in 2007; the storm water management plan and SPCC plan are <br />available for inspection; the 2007 annual hydrology report current; there are 2 approved ground <br />water monitoring wells and 3 wells have been reclaimed; NPDES monitoring serves as the <br />surface water monitoring plan; there are 2 sediment ponds on site constituting the NPDES <br />outfalls and pond inspections are current through the 3'~d quarter of 2007; and we reviewed the <br />facilities map date October 10, 2002. Mr. Weinman indicated the official compliance file and <br />DBMS mining permit will be maintained at the PEABODY office trailer located on the Hayden <br />Gulch Loadout site. This concluded our records review. <br />Mr. Hernandez began the field inspection evaluating drainage culverts located under the railroad <br />tracks for the spur line to the loadout facility north of US Hwy. 40. Permit signs and boundary <br />markers are posted as required; and the 3 topsoil stockpiles and stream buffer zone signs are <br />posted. We evaluated all the rail road track drainage culverts both north and south of US <br />Hwy. 40, down to and including the Dry Creek crossing, and compared the culvert installation <br />locations to the approved surface water runoff control map. <br />