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May 25, 2011 C- 1981 - 022 /Elk Creek Mine MPB <br />A portion of the former Hawksnest mine site located within the OMLLC's permit boundary was inspected. Jim <br />Kiger indicated that DMEA owns the property and is considering utilizing the site for a new substation. The <br />location is a small area located between the railroad track and the North Fork of the Gunnison River (see <br />Photograph No. 2). There is the remnants of a sediment pond from the former coal mine operation and an old <br />substation site presently in place. Jim Kiger indicated that they would submit a minor revision to describe the <br />reutilization of the site by the DMEA if they decide to go forward with the construction proj ect. <br />The Sanborn Creek fan site which is now the proposed location for a Vessels Coal Gas Inc. methane gas borehole <br />was inspected. The perimeter ditch at the entrance to the pad from old Highway 133 was impacted by equipment <br />when material was transported to this site for use in construction of the proposed borehole site. The excess <br />material came from the recent land slide above the highway that occurred last January. The ditch was <br />reconstructed and the area remains stable and in good condition. <br />No problems were noted at any of the facility locations during this inspection. <br />DOCUMENTS RECEIVED <br />None <br />OTHER (SPECIFY) <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 3 of 5 <br />