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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 complete inspection and a partial Phase I bond release of the Munger Canyon Mine and <br /> Loma Loadout conducted on December 3, 2008 by Mike Boulay and Sandra Brown of the Division of <br /> Reclamation, Mining and Safety(DRMS). Mr. Corey Heaps of Rhino Energy LLC, Mr. Henry Austin <br /> of OSMRE-DFD, and Mr. Scott Gerwe and Ms. Janny Choy of the BLM accompanied the DRMS <br /> during the majority of the inspection, excluding the Loma Loadout site. Mr. Jim Stover of J.E. Stover <br /> &Associates, Inc. was present for the entire inspection. Weather conditions were clear and cold and <br /> ground conditions were dry. The entire area requested for Phase I bond release was accessible. Cattle <br /> were grazing within the Munger Canyon Mine permit boundary at the time of inspection. <br /> The total permit area at the Munger Mine encompasses 1,028 acres, of which 20.8 acres were <br /> disturbed. The primary focus of this inspection was a Phase I bond release request of 18.5 acres. The <br /> areas for which Phase I bond release are being requested are at the Loma Loadout and Munger Canyon <br /> Mine site. At Munger Canyon the specific areas requested for bond release include the portal site,haul <br /> road, portal access road, coal mine waste disposal area, reclaimed topsoil pile, and the drill rig access <br /> road(Light Use Road). All of these features are shown on the exhibit titled "Munger Canyon Mine <br /> Phase I Bond Release" submitted with the bond release application. The Loma Loadout site consists <br /> of 2.9 acres being requested for Phase I release. The Loma Loadout is discussed separately at the end <br /> of this inspection report. <br /> This Phase I bond release inspection was conducted pursuant to CAM Mining LLC's Phase I Bond <br /> Release Application(SL-01) submitted September 16, 2008. During the inspection,participants <br /> walked through the majority of the Munger Canyon Mine site locations described above, to allow for <br /> visual assessment of compliance with pertinent requirements, including backfilling and grading, site <br /> stability,blending of regraded land to undisturbed areas, and drainage control. The inspection began at <br /> the lower end of the portal access road and proceeded up to the portal site, then continued to the drill <br /> rig access road and finally to the haul road where the coal mine waste disposal area and reclaimed <br /> topsoil pile are located adjacent to the road. Several constructed drainage channels located along the <br /> portal access have been approved as permanent post-mine features and are described below. <br /> Roads <br /> Access to Munger Canyon is from Colorado State Highway 139. The waste disposal haul road began <br /> at SH139 and ended east of the waste disposal area. The lower section of this road from SH139 <br /> crosses private land. This portion of the road from SH-139 to the BLM boundary was not reduced in <br /> width and was not included in this Phase I bond release application. Stipulation No. 32 (which has not <br /> been complied with)requires the operator to submit a written request from the landowner for retention <br /> of the privately owned segment of haul road (between the BLM boundary and SH139) for the <br /> postmining land use. The width of the haul road located on BLM land was reduced to about eight feet <br /> and left in place to provide access for the BLM grazing leaseholder and for the Operator to monitor <br /> and maintain the reclaimed areas. The road profile for this section of haul road was left in place and <br /> one or both sides of the road were chisel plowed and revegetated. The upper portal bench road was <br /> completely reclaimed in 2007. This required significant effort and is described below in this report <br /> under backfill and grading. Descriptions of the haul road and portal access road are provided at <br />