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INSPECTION REPORT <br />Site: GCC Energy, Hesperus, Colorado <br />Inspected By: Don R. May, P.E., Project Engineer <br />Inspection Date: Quarterly Inspection May, 2008 <br />Ponds: The east and west sedimentation ponds and their embankmeftdlets` <br />appear in good condition. The west pond is shown in photograph 1 and the east pond <br />in figure 2. Both ponds should be routinely cleared of sediment deposition. The outlet <br />works are clean and operable. Figure 3 shows a cut in the entrance road embankment <br />that is holding water and if it should fail would release sediment onto the adjoining <br />pasture. It is not clear what purpose this serves. <br />Drainage Ditches: The area has received recent rains as evidenced by the wet <br />conditions at the mine. The east side and west side drainage channels appear in good <br />general condition. The ditch on the east side of the top of the waste pile is in good <br />shape. The upper yard is shown in photo 4. Drainage in these areas is working well. All <br />other ditches and drainage structures were inspected and appear in good operating <br />condition. There are no apparent drainage problems on the site.. All drainage features <br />have been constructed and are operating as stated in the drainage plan submitted to <br />the Division of Minerals and Geology. <br />Coal Waste Pile: There are no visible signs of structural instability on the waste pile. <br />Since the last inspection the upper slope of the waste pile face has apparently been <br />reconfigured to reflect final reclamation grading. It has been graded with evenly spaced <br />pockets as shown in figure 5. The top of the waste pile is in good condition. It is <br />important that any further fill be placed in lifts not to exceed 12° and that compaction <br />results in the density stated in the design report. Photo 6 shows the top of the pile. <br />Except for the items mentioned above the fill on the waste pile has been constructed as <br />specified in the design approved by the Division of Minerals and Geology. <br />