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May 9, 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 R - Roads <br />N - Availability of Records N - Reclamation Success <br />N - Backfill & Grading R - 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 R - 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 />N - Processing Waste 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 May 9, 2012. Jim Kiger, Environmental Manager for <br />Oxbow Mining, LLC (OMLLC) was present for the inspection. Weather conditions were clear and warm. The <br />ground conditions in the facility areas were dry. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />There was a large amount of coal in the coal stockpile (photo 1) and bulldozers were moving coal around <br />the pile. Coal was being stacked on the pile and there were no signs of fugitive dust on the site or off. <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 A, East Yard and Sub - station were empty and appeared to be functioning properly. Pond B had <br />standing water, was not discharging and appeared to be functioning properly (photo 2). The straw bale sediment <br />traps along the main haul road were clean. Water samples were taken where Elk Creek enters the culvert upstream <br />of the mine workings. Water samples were also taken where Elk Creek discharges from the culvert below the <br />mine workings (photo 3). The swale across the East Yard Haul Road needs to be re- defined and/or cleaned. <br />ROADS — Rule 4.03 Construction 4.03.1(3)/4.03.2(3) Drainage 4.03.1(4)/4.03.2(4) Surfacing and <br />Maintenance4.03.1(5) and (6)/4.03.2(5) and (6) Reclamation 4.03.1(7)/4.03.2(7): <br />The main haul road was well maintained, passable and was being watered at the time of this inspection. <br />The parking lot and access roads were well maintained and passable. <br />REVEGETATION — Rule 4.15 Vegetative Cover; Timing: <br />A small patch of whitetop is growing at the Substation Pond sediment pond. This patch needs to be <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 2 of 4 <br />