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March 17, 2011 C- 1980- 004/McClane Canyon Mine MPB <br />Inspection Topic Summary <br />NOTE: V=Inspected N Not Inspected R�Comments Noted V= Violation Issued NA Not Applicable <br />Y - Air Resource Protection <br />R - Availability of Records <br />Y - Backfill & Grading <br />NA -Excess Spoil and Dev. Waste <br />NA - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />• -Other <br />• -Processing Waste <br />R -Roads <br />Y - Reclamation Success <br />Y - Revegetation <br />NA - Subsidence <br />Y -Slides and Other Damage <br />R -Support Facilities On -site <br />R -Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />R -Topsoil <br />INTRODUCTION <br />This was a complete inspection of the McClane Canyon Mine conducted by Mike Boulay of the Division of <br />Reclamation, Mining and Safety Grand Junction Field Office on March 17, 2010. There was no operator <br />representative present during the site inspection. However, I did speak with Gary Isaac, Mine Manager for <br />McClane Canyon Mining LLC (MCM) at the mine office prior to the inspection. He indicated that they were in the <br />process of hauling the remaining coal at the site to the Bowie No. 2 Mine near Paonia, CO. They were also <br />nearing completion of the shop expansion project and had contractors on site to hang the garage doors for the new <br />shop area. There was no other activity at the site at the time of the inspection. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The availability of records was checked at J.E. Stover & Associates office on the afternoon of March 17th. Jim <br />Stover had recently moved all of the records files to his office since the mine is now in temporary cessation and <br />there is not always personnel on site at the mine to allow access to the records. Jim Stover updated all of the <br />records files and all required records were on file and available for review. See the attached records checklist at <br />the end of this inspection report. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring <br />4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6,4.05.9; Stream Buffer Zones 4.05.18: <br />Weather conditions were cloudy and cool with intermittent rain/snow mix. Ground conditions were wet. The <br />sediment pond was containing muddy water approximately % to one foot below the level of the principal spillway <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 8 <br />