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September 23, 2010 C- 1981 -041 /Roadside Portals MPB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - <br />Air Resource Protection <br />Y - <br />Roads <br />N - <br />Availability of Records <br />R - <br />Reclamation Success <br />N - <br />Backfill & Grading <br />R - <br />Revegetation <br />NA <br />- Excess Spoil and Dev. Waste <br />N - <br />Subsidence <br />NA <br />- Explosives <br />NA <br />- Slides and Other Damage <br />N - <br />Fish & Wildlife <br />N - <br />Support Facilities On -site <br />R - <br />Hydrologic Balance <br />N -Signs <br />and Markers <br />Y - <br />Gen. Compliance With Mine Plan <br />NA <br />- Support Facilities Not On -site <br />R - <br />Other <br />NA <br />- Special Categories Of Mining <br />N - <br />Processing Waste <br />Y - <br />Topsoil <br />COMMENTS <br />INTRODUCTION & BACKGROUND INFORMATION <br />This was a partial inspection of the Roadside Portals Mine conducted on September 23, 2010 and a full Phase I, II <br />and III bond release inspection of the Unit Train Loadout Facility (UTL), Permanent Flood Control Dike, and <br />portions of the Railroad Spur and Overland Conveyor. These areas requested for bond release comprise <br />approximately 75.2 acres and have a designation of Industrial as the post mining land use. Mike Boulay and <br />Sandy Brown of the Division of Reclamation, Mining and Safety (DRMS) conducted the bond release inspection. <br />Ms. Tonya Hammond of Snowcap Coal Company, Inc. (SCC), Howard Strand of the Office of Surface Mining <br />Reclamation and Enforcement, Jim Stover of J.E. Stover & Associates, Inc., and Dave Kasnoff of FCI <br />Constructors, Inc. accompanied the DRMS for the entire inspection. Mark Preuss and Gabe Connor of FCI <br />Constructors and Robert Gutierrez and Mike Hall of Union Pacific Railroad attended a portion of the inspection. <br />Halliburton Energy Services, Inc (Halliburton) is the sole land owner of record and they were notified of the <br />inspection via certified mail. Halliburton did not attend the inspection; however, they were represented on -site by <br />Dave Kasnoff of FCI Constructors, Inc. FCI Constructors was Halliburton's primary contractor during the <br />construction of the Cameo Sand Storage Facility that was built for the industrial postmine land use at the former <br />UTL site. Weather conditions were clear and cool. The entire bond release area was accessible. Site inspection <br />photographs are provided at the end of this report. Aerial photographs were also taken by DRMS on the same day <br />as the site inspection and are included as Photograph Numbers 1 through 4. <br />SCC entered into a purchase and sale agreement with Halliburton to allow them to begin using the loadout and a <br />portion of the railroad spur and overland conveyor as an industrial site for unloading freight cars, and storage and <br />shipping of construction materials during the first quarter of 2006. In January 2006 the Division approved TR -48 <br />to incorporate into the permit application package the necessary approvals for the unloading, storage, or loading <br />directly onto trucks specified materials within the unit train loadout and along Haul Road #3. Halliburton has <br />actively used the loadout facility since 2006 for these purposes. On July 9, 2007 the Division received the Permit <br />Revision No. 4 application from SCC. With PR -4 SCC requested that all disturbed lands located at the Unit Train <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 15 <br />