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June 13,2011 C-I980-005/Seneca 11 Mine JDM <br /> -A small slump which originated in 2008 and subsequently repaired in 2008 was observed and movement has <br /> occurred in 2011. The slump encompasses an area of—.25 acres with a scarp of—2 ft at the head of the slump. <br /> The area is well vegetated. However the scarp may need to be repaired to prevent further erosion. <br /> OTHER (SPECIFY): <br /> This was a partial coal inspection conducted by Jason Musick of the Colorado Division of Reclamation,Mining <br /> and Safety on June 13,2011. The purpose of this inspection was to evaluate the on-the-ground condition with <br /> respect to Seneca II Mine's Phase II bond release application, Sa:05 in accordance with Rule 3.03.2(2). Jay James <br /> of Peabody Energy accompanied the inspection. The weather was clear and the ground was dry during the <br /> inspection. All areas to be inspected were accessible and visible. <br /> Lands requested for liability release under SL-05 include 219.7 acres of land reclaimed between 1989 and 2003. <br /> Surface land ownership is private(State of Colorado)and Mineral ownership is private(State of Colorado). Lane <br /> Osborn,the northwest Colorado State Land Board Representative,was notified of the inspection and no response <br /> was received. <br /> RECLAMATION SUCCESS-Rule 4.15, Rule 3: <br /> In terms of meeting the criteria for Phase 11 bond release,the reclaimed areas at the Seneca 11 Mine were <br /> acceptable with the exception of the above mentioned maintenance and repair issues. The issues mentioned above <br /> are included in the Seneca 11 Mine's annual rill and gully maintenance and weed management plan. The issues <br /> mentioned should be repaired or managed with a follow-up inspection conducted to ensure completion of repairs. <br /> REVEGETATION—Rule 4.15 Vegetative Cover;Timing: <br /> The establishment of vegetation was inspected to support the post mining land use of livestock grazing/wildlife <br /> habitat. Vegetative cover and bare areas were inspected with respect to the post mining land use and the potential <br /> for excessive contribution of suspended solids to stmamflow outside of the permit area. Species composition was <br /> visually evaluated to ensure that predominate species were observed to support the post mining land use. Seneca <br /> It's vegetations cover and diversity are acceptable and no problems were noted with revegetation at the time of the <br /> inspection. Few noxious species were noted during the inspection with the exception of the following locations: <br /> -A high number of houndstounge rosettes were observed along SBPM-13A that will need to managed. <br /> Number of Partial Inspection this Fiscal Year: 9 <br /> Number of Complete Inspections this Fiscal Year: 4 <br /> Page 4 of 7 <br />