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September 15, 2010 C-1992-080/Carbon Junction Mine <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 R - Reclamation Success <br />R - Backfill & Grading R - Revegetation <br />Y - Excess Spoil and Dev. Waste NA - Subsidence <br />NA - Explosives R - 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 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 DRMS. Marcia Talvitie of DRMS participated <br />in the field portion of the inspection. The ground was dry and the site was fully accessible. Selected <br />photographs taken during the inspection are provided at the end of this report. <br />Bond release application SL-4 is in review. The bond release application requests Phases II and III <br />(final) release on approximately 30 acres of disturbed land within the 37.61 acres of disturbed land in the <br />permit area. The application also requests Phases I, II, and III release for equipment removal from the <br />Equipment Storage Area at the south end of the permit area. The permit area covers 192.77 acres. The <br />SL-4 bond release area received Phase I release in 2005 (SL-2). <br />The SL-4 bond release area includes the North Pit, North Pit Haul Road, the Previously Reclaimed <br />Spoils Area, Topsoil Stockpile #2, the South Pit Drill Pad, the Equipment Yard, Topsoil Stockpile #7, <br />the Carbon Junction Canyon reconstruction channel, and ancillary adjacent areas. <br />The amount of bond liability requested for release is $237,356. <br />The approved postmining land use of the entire bond release area is residential. Rule 3.02.3(2) requires <br />that bond liability continue until the permittee demonstrates development of residential land use has <br />substantially commenced and is likely to be achieved. <br />The revegetation success criterion for the bond release area is 90 of the cover standard of 40 percent, <br />with 90 percent statistical confidence (permit application page 5-36). <br />Phase I reclamation bond liability (backfilling, grading, and drainage re-establishment) remains for the <br />following areas: topsoil stockpiles 4, 7, and 8; the two sediment control ponds (I and 2); various ditches; <br />and various boreholes. Phase I reclamation bond liability also remains for removal of equipment from <br />the Equipment Yard. Phase II and III reclamation bond liability (topsoiling and revegetation) remains on <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 10