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April 23, 2012 C- 1981- 012/New Elk Mine JHB <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 />N - Explosives <br />N - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />R - Other <br />R - Processing Waste <br />Y -Roads <br />N - Reclamation Success <br />N - Revegetation <br />Y - Subsidence <br />N - Slides and Other Damage <br />Y - Support Facilities On -site <br />R -Signs and Markers <br />R - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a partial inspection conducted by Janet Binns of CDRMS. The inspection began on Monday, April 23rd <br />after the Division received notification from the Office of Surface Mining and Enforcement (OSM), inspector <br />Christine Belka, that an anonymous tip had been left on the OSM hotline on April 18, 2012, that the tipster had <br />"overheard a conversation about the New Elk Mine dumping hazardous waste into the river (Purgatoire)." This tip <br />had been forwarded from MSHA representative, Dan Vettera, to the OSM. DRMS was notified of the concern on <br />Monday, April 23, 2012, Rule 5.02.5 provides for "any person who believes there is a violation of the Act, these <br />Rules, or permit conditions" may request the Division to conduct an inspection for violations. <br />The mine is an active undergound mine mining 2 seams, the Blue seam and the Allen seam. The inspection began <br />with the inspector stopping at the New Elk Coal Company (NECC) office in Trinidad, CO to talk to Ron <br />Thompson, the Mine Manager. The weather was warm and dry. <br />Ron was unable to accompany the inspector to the mine on Monday afternoon. The inspector proceeded to the <br />mine, approximately 25 miles west of Trinidad, and was met by Shawn Arehart, Surface Supervisor. <br />The inspection continued until approximately 5:30 pm on Monday, then continued at 8:30 am on Tuesday April <br />24, 2012. On April 24, 2012, BLM Representative, Melissa Smiens, from the Canon City office, accompanied the <br />inspection. Ms. Smiens had requested to accompany the Division on an inspection to observe the active mining <br />operation, and to observe the surface overlying several Federal Coal Leases. Ron Thompson accompanied the <br />4/24 inspection on the Federal Coal Lease area. Shawn Arehart, and Vince Mazzarotti of NECC accompanied the <br />inspector and BLM representative when the inspection continued on the active mine permit area. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />Conditions during the inspection were warm and gusty. NECC was operating water trucks on the haul roads <br />during the inspection. Blowing dust was not observed. <br />Number of Partial Inspection this Fiscal Year: 9 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 2 of 16 <br />