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October 13, 2011 C- 1981 - 022 /Elk Creek Mine 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 <br />N - Availability of Records <br />R - Backfill & Grading <br />N - Excess Spoil and Dev. Waste <br />R - Explosives <br />N - Fish & Wildlife <br />R - Hydrologic Balance <br />N - Gen. Compliance With Mine Plan <br />N - Other <br />N - Processing Waste <br />R - Roads <br />R - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />N - Support Facilities On -site <br />R - Signs and Markers <br />N - Support Facilities Not On -site <br />N - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />INTRODUCTION: This was a partial inspection of the Elk Creek Mine conducted by Brock Bowles of the <br />Colorado Division of Reclamation, Mining and Safety on October 13, 2011. Jim Kiger, Environmental Manager <br />for Oxbow Mining, LLC was present during the entire inspection. Weather conditions were sunny and warm and <br />the ground conditions were damp. The focus of this inspection was sediment traps and culverts. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />Coal was being loaded onto a unit train and the crusher and stacking tubes were in operation during the <br />inspection. Also, a water truck was spraying the main haul road. There were no signs of fugitive dust on site or <br />off (photo 1). <br />BACKFILL and GRADING — Rule 4.14 Contemporaneous Reclamation 4.14.1; Approximate Original Contour <br />4.14.2; Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials <br />4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />The B -seam portals by Hubbard Creek and Bear Creek were inspected. There were no signs of settling, <br />slumping or cracks in the reclaimed portal areas (photo 2). <br />EXPLOSIVES — Rule 4.08 Distance Prohibitions 4.08.4; Warnings 4.08.4; Control of Adverse Effects 4.08.4: <br />The lockers containing the detonation caps and explosives were locked and the vegetation was cleared <br />around the site. <br />HYDROLOGIC BALANCE - Rule 4.05 Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8, <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Sediment ponds A1, B, D and east yard contained water, were not discharging and appear to be capable of <br />functioning as intended. Pond C was dry. <br />The sediment trap on the west side of the West Valley Haul Road, across from pond D. needs to be cleaned. The <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 6 <br />