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III. COMMENTS-COMPLIANCE <br /> Below are comments on the inspection. The comments include discussion of observations made during the <br /> inspection. Comments also describe any enforcement actions taken during the inspection and the facts or <br /> evidence supporting the enforcement action. <br /> This was a Phase II and Phase III bond release inspection for the Blue Ribbon Mine. Representing the operator, <br /> Minrec, Inc.,was Stan Muhr,owner, and Jim Stover,consultant. Ryan Taylor represented the USDA-Forest <br /> Service and Desty Dyer represented the U.S. Bureau of Land Management. Jim Kiger represented Oxbow <br /> Mining,LLC, a surface owner of a portion of the mine site. Joe Dudash represented the Colorado Division of <br /> Reclamation, Mining and Safety. Representatives of the U.S. Office of Surface Mining and the holders of the <br /> Allen grazing rights had been notified of the inspection but did not attend. <br /> Summary of Results <br /> As a result of this Phase II and Phase III inspection at the Blue Ribbon Mine, several conclusions were reached <br /> and several issues remain to be resolved concerning field work: <br /> i. Final bond release can not be granted until pond 4 and pond 5 are backfilled and graded and an <br /> appropriate vegetative cover established. <br /> 2. Minrec needs to submit a minor revision that includes the soil loss comparison evaluation that had been <br /> originally presented in the bond release(SL-2)submittal. Upon Division approval of the minor revision, <br /> reclamation of pond 4 and pond 5 can begin. <br /> 3. Oxbow Mining previously assumed responsibility for the Hubbard Creek crossing culvert and short <br /> section of entrance road for its Elk Creek Mine.No further permitting or field work needs to be done. <br /> 4. By letters dated June 29, 2005 and August 29, 2008, Oxbow Mining requested that the dirt road leading <br /> to pond 5 should be retained, but that ponds 4 and 5 should be reclaimed. The Division approves <br /> Oxbow's request. <br /> 5. As requested by Oxbow in their August 29, 2008 letter to the Division,pond 5 should be backfilled and <br /> graded by pushing in only the southern portion of the pond embankment while removing discharge pipes <br /> and filling in the spillway. <br /> 6. As requested by Oxbow in their August 29, 2008 letter to the Division, pond 4 should be backfilled and <br /> graded by pushing in only the northeast portion of the pond embankment while removing discharge pipes <br /> and filling in the spillway. The knapweed adjacent to pond 4 needs to be sprayed before pond 4 can be <br /> backfilled and graded. <br /> 7. The ditch on the reclaimed upper mine bench terrace and the ditch that leads to pond 5 must remain. <br /> 8. The short upland diversion ditch in the northeast corner of the reclaimed main mine site and the upland <br /> diversion ditch at the reclaimed temporary coal stockpile area do not need to be reclaimed. <br /> 9. The 18 inch diameter black plastic culvert on the north end of the disturbed area needs to be removed. <br /> 10. The operator needs to continue spraying noxious weeds on the mine site. <br /> 11. Piezometers and survey markers need to be reclaimed. <br /> Page 1 <br />