2010-07-30_INSPECTION - C1981022

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Signs and markers: Signs and markers were evaluated throughout the mine site. The mine identification sign was posted and maintained at the entrance to the site from Highway 133 in Somerset, CO. It contained all of the necessary information required under Rule 4.02.2. Disturbed areas were marked with easily recognizable white plastic stakes. These were of uniform design, made of durable material, and were easily seen (as required under Rule 4.02.1). However, several areas were lacking or partially lacking these markers. In some instances, construction stakes served as disturbed area markers, but these are not likely to be maintained after completion of construction activities. Explosives cartridges were clearly marked and properly contained for use underground. No active surface blasting was being conducted at the time of inspection. A sign which stated "Warning! Explosives in Use" and describing warning signal patterns was posted at the mine entrance. This satisfies the requirements of Rule 4.02.6. Other/field inspection: The lamp house, diesel shop, and facilities areas were well-maintained and orderly. The run-of- mine conveyor was operating at the time of inspection. The newlypermitted: Elk Creek Methane Drainage facility is under construction. The foundation area is within what would normallybe a stream buffer zone, but the Elk Creek mine has a variance. The Elk.Creek is channelized in three locations to run underground through the facilities areas..A water truck was running to suppress dust on site. Pond D was holding water but not discharging. Theprimary discharge riser appeared clear and functional. The II West gob pile appeared stable. Amestimated -100 feet of storage capacity remains in this location. Runoff from the area reports to Pond E (presently dry)." The West.Valley Fill is complete and stable. Terraces run about every 50 feet. Cheat grass is present, but vegetation is otherwise good. B Pond is holding water but not discharging. A Pond is holding water but not discharging. A Pond is very dirty and on the schedule 'to be cleaned out. The Hubbard Fan Site is sealed but fan houses remain on site (to be reused elsewhere). The old Sanborn Creek mine fan site may see a change in postmining land use to industrial. Vessels Coal and Gas Inc is interested in permitting the site for a methane generator. Oxbow still has reclamation and permitting work to do before this can be approved. Records review: All required records were on file or updated at our request at the time of inspection. Records check included: • DRMS permit application package (C-1981-022) • DRMS permit renewal (PR5) and findings documents • Liability insurance - Acord policy expires 06/01/2011 • Corporate surety bond ($4,721,606) and CIRCES bond cost estimate • CDPHE APCD air emissions permit • CO special use permit (1997) - • Landowner notifications of mining schedule • Subsidence monitoring report (10/05/2009) • Annual reclamation report (01/25/2010) • DRMS 2006 mid-tern permit review documents • DRMS / OSM inspection reports (>3 years on file)