2007-11-29_REVISION - C1980005 (2)

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III. OBSERVATIONS AND FINDINGS The following discussion of observations and findings focuses on the results of grading, site stability, revegetation, and reclamation success in the Pre-Law bond release area requested. During the bond release inspection, participants walked through large portions of the site subject to the bond release request, to allow for visual assessment of compliance with pertinent reclamation requirements as described above in Section II of this document. Relevant documentation developed over the past several years is included in previous inspection reports and in Findings of Compliance documents. These were reviewed prior to the inspection and are referenced in this document as appropriate. In addition, Post-Mining Topography (Exhibit E), Cross-Sections of Backfilled and Graded Areas (Exhibit F), and Pre-Law 2005 Vegetation Sample Sites (Exhibit G) were included in the bond release application and reviewed by the DRMS during the technical evaluation of the bond release application. The Pre-Law area bond release inspection was conducted on September 12, 2007 by Mike Boulay of the Division of Reclamation, Mining, and Safety. Mr. Scott Belden of Peabody Energy Environmental Services West and Jay James of JEC Inc. accompanied the DRMS during the entire inspection. None of the land owners of record attended the inspection; however, all land owners were notified of the inspection via certified mail. Weather conditions were sunny and warm, and ground conditions were dry. The area (259.1 acres) to which the bond release request applies is located in the northern end of the Permit Area situated in Sections 27, 34 and 35, T6N, R87W, west of the 6`h Principal Meridian. The specific location is shown on Exhibit A of the bond release application. The DRMS previously released Phase I liability, which became final in February 2007, on the adjacent lands of the Permit Area that were permitted under the SMCRA permanent program. During the Phase I bond release inspection conducted in 2006 (see inspection report dated 8/24/06) a problem area within the Pre-Law lands was identified due to erosion and instability, acidic spoil, and lack of vegetation. This area is referred to as the Old Wolf Creek Pit comprising 67.4 acres where additional work is being done to mitigate the problems. As previously described, the Old Wolf Creek Area of the Pre-Law lands is not included with this current bond release application. This full liability bond release inspection was conducted pursuant to Seneca Coal Company's Pre- Law Area Bond Release Application (SL-02) received by the DRMS June 28, 2007. The 259.1 acres of reclaimed lands are being requested for full bond liability release. Site conditions with regard to pertinent reclamation requirements, including grading, site stability, topsoil replacement (if applicable), and revegetation were evaluated. A primary focus of the inspection was slope stability, erosion in the form of gullies or rills to the extent that vegetation was inhibited, the presence of bare areas void of vegetation, and a visual assessment of weeds present. An inclinometer was used to field check final reclaimed slopes at several locations to get a general indication of the steepness of the reclaimed area. The inspection began at the northeast corner of the bond release area at the top of the existing road that accesses the Pre-Law lands from the north. The eastern perimeter was walked followed by two traverses in an east to west direction from the top