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January 24, 2012 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 />N - Backfill & Grading <br />R - 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 />N - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />R - 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 />This was a partial inspection of the Elk Creek Mine conducted by Brock Bowles of the Colorado <br />Division of Reclamation, Mining and Safety on January 24, 2012. Jim Kiger, Environmental Manager <br />for Oxbow Mining, LLC (OMLLC) was present for the inspection. Weather conditions were overcast <br />and cool. The mine had 8 inches of snow, received in the previous two days. The ground conditions <br />were muddy from the melting snow making most of the mine areas inaccessible. The long wall miner <br />was being reconfigured and was not in operation during the inspection. Due to a floor bounce in <br />November, the current panel width was narrowed leaving a pillar wall in place for additional support. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />The stacking tubes were in operation stacking coal during the inspection. There was a moderate amount <br />of coal in the stockpile and there were no signs of fugitive dust on site or off. <br />EXCESS SPOIL and DEVELOPMENT WASTE — Rule 4.09 Placement, Drainage Control; Surface <br />Stabilization: <br />The II West Valley Fill refuse pile appeared to be stable. There were no signs of cracking or slumping <br />(photo 1). <br />EXPLOSIVES — Rule 4.08 Distance Prohibitions 4.08.4; Warnings 4.08.4; Control of Adverse Effects 4.08.4: <br />The area around the detonation caps and explosive locker were clear of vegetation and debris. <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 />Ponds A1, B and east yard had standing water and appeared to be functioning properly. These ponds were <br />not discharging. Pond D was full and discharging due to the recent snow fall and subsequent melting. The hay <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 5 <br />