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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 partial inspection of the Elk Creek Mine conducted by Mike Boulay of the Colorado <br /> Division of Reclamation,Mining and Safety on February 17,2010. Jim Kiger, Environmental <br /> Manager for Oxbow Mining, LLC was present during the entire inspection. Weather conditions <br /> were sunny and cold. Ground conditions were wet and partially snow covered. The mine was <br /> not conveying coal or loading coal at the time of the inspection. <br /> The haul road leading to the mire facilities was in good condition. The facilities area was <br /> muddy due to snowmelt but all areas were well maintained. The Elk Creek, Bear Creek, and <br /> Hubbard Creek drainages were inspected. All roads were generally in good condition. Some <br /> minor rutting is occurring on the road surfaces up the Bear Creek and Hubbard Creek drainages <br /> due to muddy conditions. <br /> Trains have been slow in coming to the mine and as a result of this the coal stockpile at the <br /> stacker tubes is much larger than normal. The coal stockpile and Pond D located along the Elk <br /> Creek drainage are shown below in the attached photograph. The explosives magazine located <br /> near Pond D was properly maintained. The Bear Creek fan site was operational and very well <br /> maintained.No problems were noted at the former Hubbard Creek fan and substation site. <br /> The reclaimed Sanborn Creek portals and the Sanborn Creek fan site were inspected. This area is <br /> still mostly covered in snow. The entire site was stable with no erosion or other problems noted <br /> Jim Kiger explained that Vessels Gas is considering constructing a methane gathering system at <br /> the mine and that the methane gas could potentially be used in the generation of electricity. Jim <br /> Kiger indicated that he had a meeting scheduled with Vessels later in the day following our <br /> inspection. <br /> Y � <br /> H�, t <br /> f <br /> Elk Creek Facilities - Downhill Conveyor and Coal Stockpile <br />