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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 an Inspection of coal exploration drill sites conducted by Marcia Talvitie of the Colorado
<br /> DRMS on 16-Oct-2008. Ryan Lunde represented the operator, Western Fuels - Colorado, LLC
<br /> (WFC), and was present throughout the entire inspection. The weather was clear and warm,
<br /> and ground conditions were dry.
<br /> The drill sites are located on Federal (BLM) lands in the "Third Park" area of western Montrose
<br /> County. The inspection began at 9:15 a.m. at WFC's office located at the New Horizon Mine in
<br /> Nucla, CO. Mr. Lunde provided transportation to the area of exploration, located northwest of
<br /> Nucla. Coordinate data stored in Mr. Lunde's hand-held GPS was used to efficiently locate
<br /> each of the drill sites inspected.
<br /> Under NOI X-2007-142-10, WFC requested Division approval to drill 118 holes on 98 sites. During
<br /> the fall of 2007, a total of 30 exploration holes were drilled in a four-square-mile area. The holes
<br /> drilled are numbered as follows:
<br /> NHTP06- 2, 5, 7, 10, 12, 13, 14, 16, 17, 18, 20, 21, 25, 26, 27, 28, 31, 32, 34, 36, 38, 3813, 44, 45, 48, 55,
<br /> 59, 61, 68, and 74.
<br /> Twenty-eight of the 30 sites were inspected. Holes numbered 59 and 61 were not inspected,
<br /> due to time constraints.
<br /> Signs and Markers
<br /> Each of the holes inspected was clearly identified with a stamped (numbered) aluminum cap
<br /> set into the concrete that had been used to seal the upper portion of the hole (Figure 1).
<br /> Roads
<br /> The exploration holes were located at varying distances from established public access roads.
<br /> Equipment and vehicular access to the holes had been accomplished by driving over native
<br /> ground, leaving little to no evidence of disturbance. No earthwork or grading of the surface was
<br /> evident. Most of the track locations would have been impossible to discern without the aid of
<br /> GPS technology. Vegetation bore very little evidence of damage due to traffic, and ground
<br /> conditions at the time of exploration activities must have been dry. At a few of the locations,
<br /> evidence of past vehicular travel was more visible; at these sites, Mr. Lunde had placed native
<br /> timber across the track to discourage access by curious individuals (Figure 2).
<br /> Hydrologic Balance
<br /> Groundwater was not encountered in any of the holes drilled. The ground surface at each site
<br /> had been restored to pre-existing elevations; there was no evidence that the exploration project
<br /> has altered or impacted the flow of surface water.
<br /> Backfill.& Gradina
<br /> WFC filed its Coal Exploration Drill Hole or Well Abandonment Report in February 2008. The report
<br /> lists each hole drilled, along with descriptions of the depth, diameter, and method of sealing the
<br /> hole. At each exploration site, drill cuttings had been returned to the hole to the extent possible,
<br /> leaving very minimal disturbance on the surface.
<br /> Third Park Federal NOI X-2007-142-10 16-Oct-2008
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