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February 2, 2011 C- 1980 - 004 /McClane Canyon Mine MPB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />• -Air Resource Protection <br />N <br />• -Availability of Records <br />N <br />N - Backfill & Grading <br />N <br />NA - Excess Spoil and Dev. Waste <br />N A <br />NA - Explosives <br />N <br />N - Fish & Wildlife <br />R <br />N - Hydrologic Balance <br />N <br />Y - Gen. Compliance With Mine Plan <br />N A <br />R - Other <br />N A <br />N - Processing Waste <br />N <br />INTRODUCTION: <br />- Roads <br />- Reclamation Success <br />- Revegetation <br />- Subsidence <br />- Slides and Other Damage <br />- Support Facilities On -site <br />- Signs and Markers <br />- Support Facilities Not On -site <br />- Special Categories Of Mining <br />- Topsoil <br />COMMENTS <br />This was a partial inspection of the McClane Canyon Mine conducted by Mike Boulay and Marcia Talvitie of the <br />Division of Reclamation, Mining and Safety on February 2, 2011. There was no operator representative present <br />during the site inspection. However, we did speak with Gary Isaac, Mine Manager for McClane Canyon Mining <br />LLC (MCM) at the mine office prior to the inspection. Weather conditions were clear and very cold and the <br />ground was mostly snow covered. <br />The mine has been shut down and there is no coal production at this time. The Cameo Power plant closed at the <br />end of 2010 and since this was the Mine's only customer, the mine also closed. In order to continue the <br />operations, MCM proposes to increase production to 500,000 clean tons per year and build a cleaning plant and <br />associated facilities. MCM has submitted an application for a permit revision (PR -02) to provide for expansion of <br />the surface facilities and mining plan. <br />Existing site facilities were all well maintained, roads were clear of snow and mostly dry. The site is well <br />maintained and no problems were noted during this inspection. <br />SUPPORT FACILITIES - Rule 4.04: <br />The primary purpose for this inspection was to look at the new waste pile location and new plant location in <br />McClane Canyon as proposed with PR -02. The site of the new refuse pile was viewed (see attached Photo No. 1). <br />During the inspection we also viewed the approximate location for the proposed crushing and screening facility, <br />air jig plant, product and coal mine waste stockpiles and various conveyors. The approximate location for the new <br />coal cleaning plant is shown in attached Photograph No. 2. <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 4 <br />