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August 17, 2010 C-1981-022/Elk Creek Mine MPB <br />Inspection Topic Summary <br />NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br />Y - Air Resource Protection R - Roads <br />R: - Availability of Records Y - Reclamation Success <br />Y - Backfill & Grading Y - Revegetation <br />NA - Excess Spoil and Dev. Waste Y - Subsidence <br />Y - Explosives Y - Slides and Other Damage <br />Y - Fish & Wildlife R - Support Facilities On-site <br />R; - Hydrologic Balance R - Signs and Markers <br />Y - Gen. Compliance With Mine Plan Y - Support Facilities Not On-site <br />R: - Other NA - Special Categories Of Mining <br />Y - Processing Waste Y -Topsoil <br />COMMENTS <br />INTRODUCTION <br />This was a complete inspection of the Elk Creek Mine conducted by Mike Boulay of the Colorado Division of <br />Reclamation, Mining and Safety on August 17, 2010. Jim Kiger, Environmental Manager for Oxbow Mining, <br />LLC (OMLLC) was present during the entire inspection. Weather conditions were sunny and warm. Ground <br />conditions were wet from significant rainfall on the day prior to the inspection. <br />AVAILABILITY OF RECORDS - Rule 5.02.4(1): <br />The availability of records was checked on the afternoon of 8/17. All required records were on file and available <br />for review at the OMLLC office. The records are organized and easily accessible and no problems were noted <br />with the records review. See the attached Availability of Records checklist. <br />HYDROLOGIC BALANCE -Rule 4.05 <br />[]Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring <br />4.05.13; Drainage - Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />All site sedimentation ponds were inspected. Ponds A, B, and D were retaining water, but none were discharging. <br />All three of these ponds were recently cleaned (since the last inspection). Material from each of these ponds was <br />dredged out and hauled to the East Yard Pond to dry When the material is dried it will be moved to the refuse pile. <br />The East Yard Pond with the coal fines and sediment being dried is shown in attached Photograph No. 2. Pond F <br />in t: he Hubbard Creek drainage area has become overgrown with vegetation and should be cleared out in the near <br />future to ensure that it remains functional. Pond F is shown in attached Photograph No. 3. All other <br />sedimentation ponds are all well maintained and capable of functioning as intended. Pond embankments, inlets <br />and discharge structures were stable and no problems were noted at any of the other sediment pond locations. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 8