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May 25, 2011 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 />• -Air Resource Protection <br />• -Availability of Records <br />Y - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />Y - Explosives <br />N - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />R - Other <br />N - Processing Waste <br />INTRODUCTION: <br />Y - Roads <br />N - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />R - Support Facilities On -site <br />N - Signs and Markers <br />N - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection of the Elk Creek Mine conducted by Mike Boulay of the Colorado Division of <br />Reclamation, Mining and Safety on May 25, 2011. Jim Kiger, Environmental Manager for Oxbow Mining, LLC <br />(OMLLC) was present during the entire inspection. Weather conditions were sunny and cool. Ground conditions <br />were damp due to significant rainfall over the last few days. The main facilities along the Elk Creek drainage <br />were inspected along with several of the support facility areas. <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 />Site Sediment Ponds A, B, D, F (located below the reclaimed Hubbard Creek Fansite), and the Substation No. 3 <br />Pond were inspected. All of these ponds except for Pond F were retaining significant amounts of water due to the <br />recent heavy precipitation that has occurred in the area. None of the ponds were discharging at the time of the <br />inspection. Pond inlets and embankments were stable and discharge structures at all pond locations appeared to be <br />functional and adequately maintained. <br />SUPPORT FACILITIES - Rule 4.04: <br />Structure removal and reclamation at the Hubbard Creek Fansite has been completed (see Photograph No. 1). <br />Backfill and grading was recently finished and the area was topsoiled and broadcast seeded. Many large boulders <br />that were already in the general vicinity were utilized in the reclamation to enhance the landscape and provide <br />added stability to the reclaimed slope. The site looks very good with no erosional or stability problems identified. <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 5 <br />