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July 27, 2011 <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted <br />Y - Air Resource Protection <br />N - Availability of Records <br />N - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />NA - Explosives <br />N - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />R - Other <br />NA - Processing Waste <br />C- 1981- 028/Keenesburg Strip Mine <br />COMMENTS <br />Thirteen oblique aerial photographs were taken by Harry Ranney of the Colorado Division of Reclamation, <br />Mining and Safety (Division) on July 18, 2011. The photos were reviewed in the office by Rob Zuber of the <br />Division on July 27, 2011. Three of the photos that were taken are provided in the inspection report. <br />HYDROLOGIC BALANCE - Rule 4.05: <br />The photographs showed no signs of erosion or transport of pollutants off site. Pond embankments are stable, and <br />no other compliance issues were noted with the Permanent Dugout Pond or Permanent Sediment Pond #2. <br />GENERAL MINE PLAN COMPLANCE: <br />Approved natural gas drilling activities are apparent in the photographs. An Ensign rig is on the pad in Areas 20, <br />21, 22, and 29. A pad is under construction for more drilling in Areas 3, 4, 12, and 13. No compliance issues <br />were noted in the aerial photographs and the mine appears to be operating as permitted. No observations of the <br />aerial photographs warrant an on- the - ground inspection. <br />ROADS — Rule 4.03: <br />All roads appear to be stable with no observed compliance issues. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />No erosion issues or other non - compliance issues were identified from the photographs. <br />SUPPORT FACILITIES - Rule 4.04: <br />No compliance issues were identified with the office /shop area. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 4 <br />V= Violation Issued NA =Not Applicable <br />R - Roads <br />R - Reclamation Success <br />N - Revegetation <br />NA - Subsidence <br />NA - Slides and Other Damage <br />R - Support Facilities On -site <br />N - Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />R - Topsoil <br />TOPSOIL — Rule 4.06: <br />Three topsoil piles (A -1, B -1 and A -3) were observed and appear to have no compliance issues. <br />RDZ <br />