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Mine Site Inspection <br />Mine Name: Deserado Mine <br />Permittee: Blue Mountain Energy, Inc. <br />Permit ID #: C- 1981 -018 <br />Inspection Date: March 27, 2013 9:20 — 3:00 <br />Inspection Type: Joint Complete Oversight <br />Weather Conditions: Dry /residual moisture from recent snowmelt, upper 50's, scattered clouds <br />Participants: <br />Christine Belka, Office of Surface Mining Reclamation and Enforcement (OSM) #182 <br />Zack Trujillo, Colorado Division of Reclamation, Mining, and Safety (DRMS) <br />Scott Wanstedt, Blue Mountain Energy, Inc (BME) <br />This was a joint complete oversight inspection. Deserado is an active underground federal coal <br />mine. <br />Roads (Rule 4.03): All roads were in good repair. Haul road "blisters" (permitted lay -down / <br />storage areas adjacent to haul road corridors) were in good condition with appropriate sediment <br />control structures intact. <br />Hydrology & Sediment Control (Rule 4.05): Pond DP -1 (receives and treats the majority of <br />runoff from the facilities area) was holding water but not discharging during the inspection. <br />BME is able to pump water from this pond up to the coal processing facility for use in coal <br />cleaning activities. This pump was not running at the time of inspection. The DP -1 outlet <br />discharges next to the undisturbed drainage outlet (undisturbed area drainage is transported under <br />the mine facilities area via an oversized culvert). The DP -1 outlet was submerged and had <br />sediment accumulating around the discharge point. Any pond discharge would likely have <br />sufficient pressure to displace this sediment at current levels; however, the area should be <br />monitored and excessive sediment removed. A small (approximately 5" x 8" x 3' +) sinkhole has <br />developed on the outslope of the DP -1 embankment (see photo10765). Although the sinkhole <br />does not appear to pose an immediate threat to the stability of the embankment, it should be <br />repaired in accordance with 4.05.9(11). <br />Conveyor belt wash -down area runoff drains to DP -1 through a rip -rap channel. This channel is <br />currently stable. <br />The culverts near the truck shop warehouse (below the mine substation road), at the mine entry <br />portal, and by the refuse bin are partially in- filled with sediment and require routine clean -out. <br />The metal grate covering the culvert inlet near the ROM coal conveyor was damaged. <br />Pond PP -1 is located next to the refuse bin. It receives a small portion of runoff from the <br />facilities area and was holding water at the time of inspection. This is a containment pond; <br />excess water is pumped to PP -2. The pump was not running at the time. PP -2 was holding water <br />but not discharging. This pond's combined principal and emergency discharge structure was <br />