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September 20, 2011 C -1983- 059 /Terror Creek Loadout BFB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />R - Air Resource Protection R - Roads <br />N - Availability of Records N - Reclamation Success <br />N - 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 N - Support Facilities On -site <br />R - Hydrologic Balance N - Signs and Markers <br />N - Gen. Compliance With Mine Plan N - Support Facilities Not On -site <br />N - Other N - Special Categories Of Mining <br />R - Processing Waste N - Topsoil <br />COMMENTS <br />INTRODUCTION — This was a partial inspection of the Terror Creek Loadout facility conducted by Brock <br />Bowles of the Colorado Division of Reclamation, Mining and Safety on September 20, 2011. Jim Kiger, <br />Environmental Manager for Oxbow Mining, LLC was present during the inspection. Chad Koncher, Operations <br />Foreman for the Terror Creek Loadout, gave a tour of the screening /crusher control booth. Weather conditions <br />were sunny and warm and ground conditions were dry. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />There was a moderate amount of coal stockpiled on the facilities bench and coal haul trucks were <br />unloading coal during the inspection. The sorting /crushing machine was in operation loading railcars and several <br />cars were fully loaded during the inspection. There were no signs of fugitive dust on site or off. <br />HYDROLOGIC BALANCE -Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.053; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, <br />4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring <br />4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Diversion ditch B was clear of debris and had some standing water. Culverts CMP 41 and 42 were clear <br />of rocks and debris. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization, Placement: <br />Terror Creek employees were removing coal waste from around the screening /crushing machine between <br />haul truck loads of coal. The area around the screening /crushing machine was very clean and organized. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.03.2(3) <br />Drainage 4.03.1(4)/4.03.2(4) <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 3 <br />