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III. COMMENTS - COMPLIANCE <br /> Below are comments on the inspection. The comments include discussion of observations made <br /> during the inspection. Comments also describe any enforcement actions taken during the inspection <br /> and the facts or evidence supporting the enforcement action. <br /> This was a partial inspection conducted by Kent Gorham of the Colorado Division of <br /> Reclamation, Mining, and Safety (Division). Scott Wanstedt and Jeff Dubert of Blue <br /> Mountain Energy (BME) accompanied me on the inspection. Deserado is an active <br /> underground mine that produced in excess of 1.6 million tons of coal in 2006. Ground <br /> conditions on this day were snow-covered in all areas except steep south-facing slopes. The <br /> weather was cold evidence suggests that warming temperatures during the afternoon hours <br /> recently have resulted in some melting. <br /> Hydrologic Balance <br /> The purpose of the inspection was to inspect <br /> temporary repairs to the Pond DP-1 primary <br /> riser. Ice build-up this winter resulted in <br /> abnormal stress to the riser, which began to <br /> slowly leak due to a crack or seam separation in <br /> the riser. BME had completed temporary repairs <br /> prior to this inspection. A new riser (below left) <br /> _ had been installed in accordance with the <br /> original design plan until a more permanent <br /> t <br /> repair can be completed this summer. The old riser and trash rack was found on the pond <br /> embankment. Water was pumped to another pond during repair and not discharged. The <br /> pond was discharging through the two inch weep hole and the discharge appeared clear. <br /> BME will sample flow and water quality as it exits the weep hole as was done prior to <br /> damage to the riser. <br /> General Mine Plan Compliance <br /> BME continues to mine in longwall panel 9 after recently re-starting following a spontaneous <br /> combustion event last fall. <br /> 3 <br />