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January 12, 2009 <br /> Cam Mining LLC (Rhino Energy LLC) <br /> C/o J.E Stover & Associates, Inc. <br /> P.O. Box 60340 <br /> Grand Junction, CO 81506 <br /> December 3, 2008, Munger Canyon Mine & Loma coal loadout facility, <br /> DRMS Permit# C-1981-020 <br /> Phase I Bond release inspection <br /> Jim Stover P.E., J.E. Stover & Associates, Inc. <br /> Corey Heaps, RHINO Energy, LLC <br /> Mike Boulay & Sandy Brown, Colorado Division of Reclamation, Mining, and Safety (DRMS) <br /> Scott Gerwe & Janny Choy, USDI/Bureau of Land Management (BLM) <br /> Henry Austin, USDI / Office of Surface Mining (OSM) <br /> I participated in a Phase I Bond release inspection for 18.5 acres proposed of the Munger Canyon <br /> Mine reclaimed areas, and the associated Loma Coal Loadout as indicated above. (2.9 acres at <br /> the loadout included in the total 18.5 acres proposed for release). This is a reclaimed <br /> underground coal mine (federal coal and BLM surface disturbance at the portal entries and <br /> undermined surface areas) and the coal loading facility. The mine was inactive (no coal <br /> production) for several years, and the surface disturbances including roadways,refuse disposal <br /> cells,portal bench and portal entries, drill site and associated access roadway, and the coal <br /> loading facility in Loma were reclaimed in 2001, 2006, with the majority of the Munger Canyon <br /> Mine grading and backfilling, seeding, mulching, and surface water runoff control completed in <br /> 2007. Weather was cold and clear, and ground conditions were dry throughout the mine. <br /> Prior to the inspection I reviewed DRMS inspection reports, and the bond release application <br /> dated September 16, 2008. DRMS representatives and Mr. Stover discussed the reclamation <br /> completed with the group, and we walked all the reclamation areas up to the former portal <br /> benches. This Phase I bond release application was determined complete by DRMS on <br /> October 30, 2008. All buildings, structures, and facilities at both Munger Canyon &the Loma <br /> loadout have been removed; coal base material from the loadout was removed and backfilled at <br /> the Munger Canyon site. The portal areas were permanently sealed in accordance with the <br /> approved plan and MSHA regulations. Subsidence monitoring has not been required at Munger <br /> Canyon Mine for some time. The bond release application included a Public Notice that was <br /> publishes as required in a local newspaper; and a Certificate of Service to those landowners, <br /> agencies,utilities, water conservancy and control groups required to be notified of the bond <br /> release application. No one from the Public or landowners participated in the bond release <br /> inspection <br /> Annual hydrology reports indicate the reclaimed mine does not have a significant impact on the <br /> regional groundwater and surface water systems. <br />