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June 5, 2012 C- 1981- 020/Munger Canyon Mine MPB <br />Overall the reclamation project has been very successful and there has been minimal erosion to date. The graded <br />backfill slopes in the portal area blend in well and conform to the original topography. The portal access road <br />reclamation generally blends into the adjacent steep slope and outcrop topography. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; 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 />East Salt Creek at the entrance to the site was flowing at what appeared to be lower than normal flow for this time <br />of year. Munger Creek was dry. <br />The entire Munger Canyon Mine site was viewed during the inspection. There are ten post -mine channels <br />approved as permanent features including the following designated channels A, Al, A2, B, C, D, E, F, G, and H. <br />All permanent post -mine drainage channels were inspected. The 10 permanent channels have functioned well <br />with no significant erosion observed since they were constructed. Channel E is shown in Photograph No. 2 at the <br />end of this inspection report. <br />Ditches and culverts associated with the reclaimed waste disposal site, cover soil stockpile site, and the topsoil <br />stockpile locations were in good condition and maintained. The waste disposal area sediment pond was dry. The <br />inlet, embankment and discharge structures were stable. The reclaimed areas of the mine site were stable with <br />adequate surface water runoff control and no problems were noted. <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 />Surfacing and Maintenance4.03.1(5) and (6)/4.03.2(5) and (6) <br />Reclamation 4.03.1(7)/4.03.2(7): <br />Access to Munger Canyon is from Colorado State Highway 139. I met Scott Gerwe at the locked entrance gate to <br />the site. The access road to the mine site was dry and the road was in good condition. The width of the haul road <br />located on BLM land was reduced to about eight feet and left in place to provide access for the BLM grazing <br />leaseholder and for the Operator to monitor and maintain the reclaimed areas. The section of narrowed haul road <br />on BLM land was found to be in good condition and no problems were noted along its entire length up to the <br />former portal bench access road. The upper portal bench road that provided access to the mine bench and portals <br />was completely reclaimed in 2007. The inspection began at the lower end of the portal access road and proceeded <br />up to the portal site, then continued to culvert locations along the haul road, the coal mine waste disposal area and <br />sediment pond location. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 3 of 8 <br />