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July 26, 2012 C -1983- 059 /Terror Creek Loadout JRS <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R =Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />N - Availability of Records <br />N - Backfill & Grading <br />N - 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 />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 />N - 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 Terror Creek Loadout conducted by Jim Stark of the Colorado Division of <br />Reclamation, Mining and Safety. No representative from Terror Creek, LLC was present on the inspection. The <br />operation was not actively processing or loading coal at the time of the inspection. Last month Jim Kiger of <br />Terror Creek sent the Division an e -mail stating that the Terror Creek Loadout would be idled and all personnel <br />would be moved up to the Elk Creek Mine. The loadout would only be staffed and operational if an order for the <br />specialty coal it produces was received. The gate to the site is open, however, because a trucking company leases <br />the shop and warehouse building. The Terror Creek Loadout is not being put into temporary cessation and, as <br />such, must continue to perform all maintenance and monitoring as required by the approved permit. The weather <br />was hot and sunny and the ground was dry. <br />HYDROLOGIC BALANCE - Rule 4.05 Drainage Control 4.05.1, 4.05.2, 4.053; 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 Monitoring <br />4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, <br />4.05.9; Stream Buffer Zones 4.05.18: <br />- The sediment pond at the east side of the loadout was dry at the time of the inspection. The pond embankment <br />was well vegetated and stable and no erosional problems were noted. The emergency spillway is an open channel. <br />It appeared to be stable at the time of the inspection. <br />- The dugout pond was dry at the time of the inspection. The pond area was well vegetated and stable and no <br />problems were noted. <br />- The roadside ditch (which flows into the sediment pond) was clean at the time of the inspection. There was no <br />down- cutting or other erosional problems noted at the time of the inspection. <br />- The ditch along the north side of the coal stockpiles was clean at the time of the inspection. This ditch flows <br />through a culvert and into the main roadside ditch. The culvert was also clean. There was no down - cutting or <br />other erosional problems noted in the ditch. <br />- The remaining culverts on the site were all clean at the time of the inspection. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 7 <br />