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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 combined partial and bond. release inspection of the New Horizon Mine conducted <br /> by Marcia Talvitie and Sandy Brown of the Colorado DRMS on 25-Aug-2008. The primary <br /> purpose of the inspection was to evaluate Bond Release Application No 11 (SL-11). Ross Gubka <br /> and Tom Fry represented the operator, Western Fuels - Colorado (WFC), and were present <br /> throughout the entire inspection. One surface land owner, Mel Staats, participated in the <br /> inspection on his lands. Ground conditions were dry and the temperature was hot. <br /> Background Information <br /> WFC submitted an application for SL-11, a partial Phase I and Phase II bond release for portions <br /> of the permit area. WFC has requested Phase I release for 116.7 acres located primarily north of <br /> BB road and east of 2700 Road and they have requested Phase II bond release for 310.4 acres <br /> located east of 2700 Road and primarily south of BB road. The Division determined the <br /> application to be "Complete" on 05-Aug-2008. This inspection was performed within 30 days, in <br /> accordance with Rule 3.03.2(2). <br /> For a Phase I bond release the Division evaluates: the backfilling/grading to determine if <br /> approximate original contour has been achieved; the stability of the reclaimed land surface, <br /> swales and depressions with regard to numbers of such features and effect on post-mining land <br /> use; whether the regraded landscape blends in with the adjacent undisturbed lands; and the <br /> functioning of reconstructed drainages, blending at disturbance boundaries, and channel <br /> erosion. For Phase II bond release the Division evaluates: topsoil replacement; vegetative <br /> cover, noting species composition, bare or weed-infested areas; and off-site sedimentation. <br /> Surface ownership of the Phase I and Phase II bond release lands is private, and there are <br /> numerous owners, including WFC. Each of the owners was notified in advance of the inspection <br /> by certified mail, and given the option to attend if they so chose. Mr. Staats was the only <br /> participating land owner, although we did meet Ward Burbridge during the inspection while he <br /> was cutting hay. The inspection began at the WFC office on the mine site at 10:30 a.m. as <br /> planned. Ms. Brown described the bond release process as it is administered by the Division, <br /> and explained the criteria that WFC must meet for each phase of bond release. <br /> Permit area included in application for Phase I Release <br /> Field data on elevation and grade were collected on properties north of BB Road (Figure 1). <br /> Surface contours depicted in the WFC application were created from elevations measured by <br /> the operator. A contour ditch has been dug along the top of the slope at the northern edge of <br /> the area (Figure 2), directing surface flow away from the slope and to the west, flowing <br /> ultimately to Pond 009. <br /> Parcels included in application for Phase II Release <br /> New Horizon Mine C-1981-008 25-Aug-2008 <br /> -1- 1 <br />