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'September 10, 2010 C-1980-005/Seneca II Mine DTM <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 />NA - Excess Spoil and Dev. Waste NA - Subsidence <br />NA - Explosives NA - Slides and Other Damage <br />Y - Fish & Wildlife NA - 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 />R - Other NA - Special Categories Of Mining <br />NA - Processing Waste R -Topsoil <br />COMMENTS <br />INTRODUCTORY COMMENTS <br />This was a complete inspection of the Seneca II Mine, conducted by Dan Mathews of the DRMS Grand Junction <br />Field Office. I was not accompanied by an operator contact, but checked in at the mine office and spoke to Dennis <br />Jones, SCC Hydrologist, prior to the site inspection. I conducted a records review at the mine office at <br />approximately 8:45am, and began the mine site inspection at approximately 9:45am. I met Roy Karo, SCC <br />Reclamation Manager, at the mine entrance area upon completion of the inspection, and spoke to him regarding <br />my observations. Weather was cloudy and cool during the inspection; ground conditions were dry in most areas. <br />The site inspection focus was the Pond 008 watershed; all other portions of the original Seneca II permit area (over <br />3000 acres) are now included in the new Peabody Sage Creek Mine permit area (Permit No. C-2009-087). The <br />DRMS permit for the Peabody Sage Creek Mine was issued earlier this month, and inspections for the portion of <br />the permit areas that currently overlap are being conducted under Permit C-2009-087. Permit Revision No. 2 (PR- <br />2), which is currently under review, will reduce the size of the Seneca II (C-1980-005) permit area. The 3000+ <br />acre overlap area will be removed from the Seneca II permit area, leaving a revised Seneca II permit area of less <br />than 400 acres, limited to those portions of the current permit area within in the Pond 008 watershed. <br />AVAILABILITY OF RECORDS - Rule 5.02.4(1): <br />Required records were on file and up to date, through the 2nd Quarter, 2010. The status of Routt county special <br />use permit (SUP) for Seneca II is not entirely clear. The SUP on file may have expired, but all coal extraction <br />associated with the Seneca II Mine (Permit C-1980-005) has ceased, and reclamation has been completed. Future <br />activities are limited to monitoring and maintenance. Based on phone contact with Rebecca Bessey in the Routt <br />County Planners Office in April 2010, special use permits are typically required only through the life of active <br />mining. Ms. Bessey indicated that her office would research the matter further, and advise SCC (and DRMS) of <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: <br />Page 2 of 8