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September 15, 2010 C-1981-035/King Coal Mine TAK <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 />R - Backfill & Grading Y - Revegetation <br />R - Excess Spoil and Dev. Waste R - Subsidence <br />Y - Explosives NA - Slides and Other Damage <br />Y - Fish & Wildlife R - Support Facilities On-site <br />R - Hydrologic Balance R - Signs and Markers <br />R - Gen. Compliance With Mine Plan NA - Support Facilities Not On-site <br />NA - Other NA - Special Categories Of Mining <br />NA - Processing Waste R -Topsoil <br />COMMENTS <br />This was a complete inspection conducted by Tom Kaldenbach of the Colorado Division of Reclamation, <br />Mining and Safety. Jim Jarvis represented the operator. With the operator's consent, this report was <br />issued from the Denver office of DRMS. <br />Mining was active at the King II Mine in the Southern Ute area north of the state permit area where OSM <br />is the regulatory authority. Within the state permit area, mining has advanced to the second section west <br />of the entries leading from the portals. <br />The ground was dry and the entire site was accessible. Selected photos taken during the inspection are <br />provided at the end of this report. <br />AVAILABILITY OF RECORDS - Rule 5.02.4(1): <br />The results of the records check are shown on the attached list. All required records were available. <br />BACKFILL and GRADING - Rule 4.14 Contemporaneous Reclamation 4.14.1; Approximate Original Contour <br />4.14.2; Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials <br />4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />Demolition of structures in the King I Mine portal area is in progress, although there was no activity <br />during the inspection. The King I portals were sealed in 2009. <br />EXCESS SPOIL and DEVELOPMENT WASTE - Rule 4.09 Placement; Drainage Control; Surface Stabilization: <br />Several piles of coal waste rock were on the top of the waste pile, awaiting incorporation into lifts. The <br />top surface of the pile was dry and gently slopes away from the face of the pile. The face of the pile was seeded <br />and mulched last fall, but little seed germination was evident, yet. The 100-year rock-lined diversion ditch on the <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 10