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September 19, 2012 C- 1981 - 020 /Munger Canyon Mine MPB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R °Cornments Noted V= Violation Issued NA Applicable <br />Y - Air Resource Protection <br />R - Availability of Records <br />Y - Backfill & Grading <br />NA - Excess Spoil and Dev. Waste <br />NA - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />NA -Other <br />Y - Processing Waste <br />R -Roads <br />Y - Reclamation Success <br />Y - Revegetation <br />NA - Subsidence <br />Y - Slides and Other Damage <br />Y - Support Facilities On -site <br />Y -Signs and Markers <br />R - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />Y - Topsoil <br />COMMENTS <br />This was a complete inspection of the Munger Canyon Mine conducted by Mike Boulay of the DRMS Grand <br />Junction Field Office on September19, 2012. There was no operator /representative from Munger Canyon Mine <br />present during the inspection. Weather conditions were sunny and warm and ground conditions were dry. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The availability of records was checked at J.E. Stover& Associates office on the afternoon of 9/19. All required <br />records were on file and available for review during this complete inspection with the exception of the Insurance <br />Certificate. The Insurance Certificate has expired and needs to be renewed. Please see the DRMS Availability of <br />Records checklist at the end of this inspection report. <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, 4.05.10; <br />Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; <br />Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />Reclamation work which remains to be done at the site includes removal of the sediment pond and associated ditch <br />and culvert reclamation in the coal waste disposal vicinity, along with culvert removal /dry ford construction along <br />the retained segment of the haul /access road located on BLM surface, and width reduction of the segment of the <br />road on private land (approximately' /2 mile in length). This work can be undertaken following appropriate <br />demonstration of site stabilization to allow for sediment pond removal. There are two remaining culverts to be <br />removed and replaced with dry fords /low -water crossings. These culverts are shown in the attached photographs. <br />In addition to the culverts there are two corrugated metal spillway pipes associated with the sediment pond <br />(primary and emergency spillways) that cross under the access road and also need to be removed. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.03.2(3) <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 6 <br />