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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 /> General Comments <br /> This was a partial inspection of the mine site. The inspection was preceded by a meeting at the Peabody <br /> Twentymile Coal Company office, to discuss Peabody Sage Creek Coal Company's recently submitted permit <br /> application for the proposed Sage Creek underground mine. DRMS attendees at the meeting in addition to <br /> myself were Dan Hernandez, Tom Kaldenbach, and Janet Binns, all of whom are involved in review of the Sage <br /> Creek application. Peabody Seneca Coal Company representatives included Roy Karo and Jay James, and <br /> Peabody Sage Creek Coal Company representatives included Jerry Nettleton, Brian Dunphee, and Scott <br /> Cowman. All of the individuals listed were present on the site inspection on 8/13/09, with the exception of Mr. <br /> Nettleton. <br /> The proposed permit area for the Sage Creek Mine will include most of the current Seneca II permit area with <br /> the exception of the Pond 008 watershed. Issues discussed at the brief meeting included a summary of those <br /> areas that would be incorporated into the Sage Creek permit, necessary amendments to the current NPDES <br /> permit, the need for access agreement documentation, appropriate signage for both permit areas, and the <br /> importance of properly marked permit boundaries on the ground. There was also discussion of the need to <br /> ensure that approved revegetation success standards for the current Seneca II permit are properly applied to <br /> both the proposed Sage Creek permit area, and the much smaller Seneca II permit that would remain (following <br /> approval of the Sage Creek permit and future Seneca II Permit Revision application). <br /> All areas of the Seneca II mine have been reclaimed with the exception of the shop facility. The sediment <br /> ponds, the remaining stock ponds and roads have been approved as permanent facilities to support the <br /> postmining land use. Full bond release has been approved for most"pre-SMCRA" reclamation (Pre-law). Phase <br /> 1 bond release has been approved for the major portion of"post-SMCRA" reclamation, and Phase 2 release has <br /> been approved for a substantial portion of the Phase 1 release area. Currently a Phase 1 bond release <br /> application (SL-4) is under review for areas of the"East Wadge" reclamation in the Pond 008 watershed, <br /> Postmine Channel PM-12A in the Pond 008 watershed, and the solid waste disposal site in the Pond 002 <br /> watershed. <br /> The partial inspection focused on the Pre-law Wolf Creek spoils area, Road E-1, portions of Road C, and the <br /> length of postmine channel PM-12A. A brief follow-up inspection accompanied by Roy Karo was conducted on <br /> 8/14/09. Weather on both days of inspection was clear and warm, and ground conditions were dry. <br /> Pre-Law Wolf Creek Spoils <br /> The"Pre-Law"Wolf Creek Spoils area was permitted and bonded under the Colorado Open Cut Land <br /> Reclamation Act of 1969 and the Colorado Open Mining Land Reclamation Act of 1973 as amended in 1976. <br /> Rules and regulations in place at that time dictate the reclamation requirements for the Wolf Creek spoils. Refer <br /> to the bond release findings for SL-1 and SL-2 for a more detailed description of the criteria. <br /> A major portion (257.71 acres)of the Pre-Law spoils that were included in the Seneca II permit area was fully <br /> released from bond within SL-2 (Proposed Decision November 29, 2007). Remaining pre-law lands include 67.4 <br /> acres in the old Wolf Creek Pit area, 1.13 acres for drainage channel PL-1, and a 0.26 acre narrow corridor that <br /> was disturbed by dozer tracking across the reclamation to access to the Wolf Creek Pit area in 2007 for remedial <br /> grading work. <br /> The Wolf Creek pit includes areas of steep, poorly vegetated, acid affected spoils and a depression which holds <br /> water during parts of the year. Channel PL-1 extends from the reclaimed Wolf Creek Spoils depression area <br /> down gradient for approximately 1800 feet along an abandoned road corridor directing any overflow from the <br /> depression area pond into the Sediment Pond 002 watershed. The Pre-Law Road that extends from the junction <br /> of Road E-1 up to near the lower end of the PL-1 channel is not included as disturbed area subject to regulation <br /> or bonding under the Pre-Law requirements. <br /> 3 <br />