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August 18,2011 C-1981-018/Deserado Mine JRS <br /> Inspection Topic Summary <br /> NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br /> N -Air Resource Protection R -Roads <br /> R -Availability of Records R -Reclamation Success <br /> R -Backfill&Grading N -Revegetation <br /> N -Excess Spoil and Dev.Waste N - Subsidence <br /> N -Explosives N - Slides and Other Damage <br /> N -Fish&Wildlife R - Support Facilities On-site <br /> R -Hydrologic Balance N - Signs and Markers <br /> R -Gen. Compliance With Mine Plan N -Support Facilities Not On-site <br /> R -Other N -Special Categories Of Mining <br /> R -Processing Waste N -Topsoil <br /> COMMENTS <br /> This was a complete inspection of the Deserado Mine conducted by Jim Stark and Brock Bowles of the Colorado <br /> Division of Reclamation,Mining and Safety(Division). Scott Wanstedt of Bleu Mountain Energy(BME) <br /> accompanied us. This inspection was conducted in two parts. The first part was a normal I&E inspection that <br /> ended around 15:45. The second part began at approximately 16:30. We returned after being notified of an <br /> anonymous complaint of possible illegal dumping at the Deserado Mine. This portion of the inspection lasted <br /> until approximately 19:45 and is discussed in detail in the"OTHER"heading below. The mine was actively <br /> producing coal,hauling material to the refuse pile and loading and shipping coal to the loadout at the time of the <br /> inspection. The weather was hot and sunny and the ground was dry. <br /> When we arrived on site we sat down in the conference room with Scott and Jeff Dubert and discussed a possible <br /> Phase I Bond Release for the Deserado Mine's reclaimed methane drainage well pads, vent shafts,return shafts, <br /> refuse pile RP-1 and the East Portal area. We discussed the bond release process and the bond release criteria for a <br /> Phase I Bond Release. We also discussed what a Phase I Bond Release inspection for these sites would entail and <br /> the timing of the submittal. Both Scott and Jeff indicated that they would like to submit a partial Phase I Bond <br /> Release application for these areas"in the near future"but were not sure of an exact date. Since there are a lot of <br /> reclaimed lands at the Deserado Mine(approximately 136 acres), it would benefit BME to submit the application. <br /> The Division will process the Phase I Bond Release application within the regulatory timeframes once it is <br /> received. <br /> AVAILABILITY OF RECORDS—Rule 5.02.4(1): <br /> -All of the records were available in Scott Wanstedt's office at the mine. Please see the availability of records <br /> checklist at the end of this inspection report for more details. <br /> Number of Partial Inspection this Fiscal Year: 1 <br /> Number of Complete Inspections this Fiscal Year: 1 <br /> Page 2 of 22 <br />