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September 12, 2011 <br />X- 2007 - 223 -08 /Oxbow 2007 NOI - Elk Creels Mine KAG <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 N - Roads <br />N - Backfill & Grading R - Reclamation Success <br />N - Fish & Wildlife N - Revegetation <br />N - Hydrologic Balance N - Slides and Other Damage <br />N - Gen. Compliance With Mine Plan N - Signs and Markers <br />N - Other N - Topsoil <br />COMMENTS <br />RECLAMATION SUCCESS - Rule 2.02(8) and 4.21.2(2): <br />This was a bond release inspection for coal exploration activities conducted under a Notice of <br />Intent (NOI) for exploration of coal involving the removal of 250 tons or less. Jim Kiger, <br />Environmental Manager at Oxbow Coal Company, was present during the inspection. All <br />reclaimed roads and drill sites included in this Notice of Intent (NOI) are located south of the <br />mine facility area in rugged terrain on lands owned by Oxbow Coal Company, BLM, US Forest <br />Service, and private interests. A sampling of reclaimed roads and drill sites were observed by <br />pedestrian survey as well as viewed for a distance on an opportunistic basis. In many cases, <br />reclaimed exploration roads and sites are comingled with methane degas disturbances covered <br />by the Oxbow mining permit and bond. For specific details, please refer to the NOI Final <br />Reclamation Report. <br />All of the sites covered under this <br />NOI, with one exception, are located <br />in very steep terrain east of <br />Hubbard Creek in Section 12. Sites <br />ECM - 2007 -62 and 63, located on a <br />steep, brush covered slope, were <br />viewed from a distance. The sites <br />appeared vegetated similar to other <br />sites visited and nothing unusual <br />was noted. On the afternoon of the <br />second day, we traversed a section <br />of reclaimed road on the Bear Creek <br />side of Section 12 that was used to <br />access sites ECM - 2007 -64 and 65. <br />The road reclamation was found <br />well vegetated and in excellent <br />condition (shown right). <br />y Lj' 4 <br />s <br />t , <br />r <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 4 <br />r' <br />a <br />'r <br />