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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 bond release inspection of the seismic drill sites for the 1993 Dry Creek Project <br /> conducted by Jason Musick of the Colorado Division of Reclamation, Mining and Safety (Division) on <br /> 21 July 2009. Jay James of Peabody Energy accompanied the inspection. The weather was clear <br /> and sunny during the inspection. The ground was dry. <br /> The sites of the 114 seismic holes and 3 boreholes drilled under NO[ X-1993-168-27 were inspected. <br /> The holes included: <br /> 3313C, 3314C, and 3317C <br /> Holes 3314C and 3317C were completed as monitoring wells and are currently active at the time of <br /> the inspection. <br /> Hole 3313C was abandoned and reclaimed in compliance with rule 4.07.3 by refilling them up to 10 <br /> feet from the surface. Cement was used to fill the hole up to 3 feet from the surface and the <br /> remainder filled with drill cuttings. The holes were marked by 2"X2"wooden stake with a number <br /> stamp attached. Abandonment reports dated 23 August 1993 were provided to the DRMS for each <br /> hole. <br /> The results of the inspection, including example photographs of the area of seismic line and holes is <br /> provided below. <br /> No construction of roads or pads was done at the exploration sites. All seismic line locations and <br /> borehole sites appeared to be well vegetated. All sites appeared to be well vegetated and showed no <br /> signs of erosion, damage, evidence of roads, or any other problems. During the inspection there was <br /> no evidence that the drilling had occurred with the exception of the marking cap at each location. <br /> Based on this inspection, it is determined that all 114 of the seismic holes and hole 3313C drilled <br /> under NOI 1993-168-27 were properly abandoned and the drill sites were adequately reclaimed. All <br /> reclaimed exploration drill sites remain stable. <br /> East West Seismic Line Location <br />