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December 15, 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 <br />R <br />- Roads <br />R - Availability of Records <br />Y <br />- Reclamation Success <br />R - Backfill & Grading <br />Y <br />- Revegetation <br />NA - Excess Spoil and Dev. Waste <br />Y <br />- Subsidence <br />Y - Explosives <br />Y <br />- Slides and Other Damage <br />Y - Fish & Wildlife <br />R <br />- Support Facilities On -site <br />R - Hydrologic Balance <br />R <br />- Signs and Markers <br />Y - Gen. Compliance With Mine Plan <br />Y <br />- Support Facilities Not On -site <br />R - Other <br />NA - Special Categories Of Mining <br />Y - Processing Waste <br />Y <br />-Topsoil <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 December 15, 2010. Jim Kiger, Environmental Manager for Oxbow Mining, <br />LLC ( OMLLC) was present during the entire inspection. Weather conditions were cloudy and cool. Ground <br />conditions were mostly dry. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The availability of records was checked on the morning of 12/15. 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 />BACKFILL and GRADING — Rule 4.14 <br />[]Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination <br />4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and <br />Gullies 4.14.6: <br />Reclamation of the Hubbard Creek fan site was underway at the time of the inspection. Several structures are <br />being demolished or removed. The fan housing has been moved to the main facilities area. A water well, utility <br />borehole and vent shaft have all been reclaimed in the past at this site. The concrete foundation for the fan <br />housing and the concrete surrounding the vent shaft is being demolished and some is being used for backfill <br />material. The area will be regraded to the approximate original contour. Photographs of the reclamation at the <br />former Hubbard Creek fan site are shown in attached Photo No's 1 and 2. The clean water diversion ditch above <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 8 <br />