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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 Yoast/Seneca II-W <br /> Project conducted by Jason Musick of the Colorado Division of Reclamation, Mining and Safety <br /> (Division)on 29 September 2009. Jay James of Peabody Energy accompanied the inspection. The <br /> weather was clear and sunny during the inspection. The ground was dry. <br /> Of the 152 boreholes drilled and abandoned under NOI X-1988-168-22, 147 holes were mined <br /> through during the course of mining activities at the Seneca II-West and Yeast Mines. The holes <br /> included: <br /> 2770B through 2823B, 2826B through 28316, 2834E through 2840C, 2842E through 2871B, <br /> and 3030E through 3033B. <br /> Holes 2824B, 2825B, 2832B, 2833E and 2841 B were abandoned and reclaimed in compliance with <br /> rule 4.07.3 by refilling them up to 10 feet from the surface. Cement was used to fill the hole up to 3 <br /> feet from the surface and the remainder filled with drill cuttings. The holes were marked by 2"X2" <br /> wooden stake with a number stamp attached. Abandonment reports dated 02 December 1988 and 01 <br /> November 1991 were provided to the DRMS for each hole. <br /> Holes 2879B, 2880B, GWS-69, GWS-70, and GWS-71 were completed as monitoring wells under <br /> production well/permit number 037524F <br /> The results of the inspection, including example photographs of the sites is provided below. <br /> All sites appeared to be well vegetated and showed no signs of erosion, damage, evidence of roads, <br /> or any other problems. During the inspection there was no evidence that the drilling had occurred <br /> with the exception of the marking stake. <br /> Based on this inspection, it is determined that all five of the remaining un-mined through holes drilled <br /> under NOI 1988-168-22 were properly abandoned and the drill sites were adequately reclaimed. All <br /> reclaimed exploration drill sites remain stable. <br /> 2833B Access Road 2825E Marker <br />