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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 of the Elk Creek Mine conducted by Marcia Talvitie of the Colorado <br /> DRMS beginning at 9:00 a.m. on Thursday, 26 February 2009. Jim Kiger represented the operator, <br /> Oxbow Mining LLC, during the inspection. <br /> The weather was chilly and partly cloudy, and the area had received a sizable precipitation event (rain <br /> and/or snow) on February 23rd. Ground surfaces throughout the permit area were either wet, muddy, or <br /> snow-covered. <br /> Availability of Records <br /> Records were available at the OMLLC office for inspection. A completed DRMS Availability of Records <br /> form is attached to this report. <br /> Roads <br /> Roads throughout the permit area were moist due to the recent precipitation event, but passable by <br /> vehicle. <br /> Hydrologic Balance <br /> • Elk Creek was flowing at a very low rate into the culvert that runs beneath the upper fan bench. <br /> • Pond Al appeared to be full or nearly so. <br /> • Pond B was full and still predominantly covered with ice. <br /> • Pond C-The bottom of the pond appeared to be muddy, but there was no standing water. <br /> • Pond D - This pond was nearly full at the time of the inspection, with a low-volume discharge into <br /> the Elk Creek culvert below. Sampling of the discharge had occurred earlier in the month. <br /> Impoundment banks were well vegetated, and appeared to be stable with respect to erosion <br /> (Figure 1). <br /> Pond E was dry. <br /> • Pond F-The side slopes were still covered with snow, and the small amount of water in the bottom <br /> of the pond was frozen. <br /> • East Yard Pond -The pond bottom was partially covered with a shallow puddle of water. The outer <br /> fill slope of the East Yard, above the railroad tracks, was stable and well vegetated along its entire <br /> length (Figure 2). <br /> • Substation No. 3 Pond-The ditch approaching the pond from the west showed signs of recent flow; <br /> the culvert inlet was clear. The ditch approaching the pond from the east was dry, with vegetation <br /> well established. The bottom of the pond was nearly covered with water and ice (Figure 3). No <br /> discharge had yet occurred through the primary dewatering pipe. <br /> Explosives <br /> Explosives and blasting caps are stored in separate magazines. Jim Kiger said that ATF had conducted <br /> an inspection the previous week, for the purpose of renewing the company's Explosives permit. The <br /> steel protecting one lock required an upgrade. This was fixed; renewal of the permit is expected. <br /> Support Facilities <br /> A diesel tank was stored at the East Yard. The tank was empty, and should be tagged as such, in order <br /> to negate requirements for secondary containment. <br /> Elk Creek Mine C-1981-022 26-Feb-2009 <br /> -1- <br />