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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 275 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />May 7, 2003 <br />Ron Thompson <br />Peak Project Management <br />3800 Co. Road 63.9 <br />Trinidad CO 81082 <br />RE: Sediment Pond Inspections, 1st Quarter 2003 <br />Lorencito Coal Company, LLC, #C-96-084 <br />Dear Mr. Thompson: <br />The Division of Minerals and Geology (DMG) has reviewed the 1st quarter 2003 <br />sediment pond inspections for the Lorencito Canyon mine. <br />DIVISION O F <br />MINERALS <br />GEOLOGY <br />RECLAMATION <br />MINING•SAFETY <br />Bill Owens <br />Governor <br />Greg E. Walther <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Reports were noted for ponds 6A, 7A, 8, 9, 9A, and 10A. Photographs taken during the <br />inspection are an excellent addition to the reporting. The comment in past inspections <br />related to the installation of a staff gauge was not noted in this quarterly reporting. <br />However, my understanding from a conversation with you on May 6, 2002 was that <br />these staff gauges have yet to be installed. Please ensure that this work is completed <br />prior to the next DMG complete inspection. <br />As requested in past DMG reviews, an estimate of the available sediment storage <br />capacity was noted in the 1St quarter reports. However, there seems to be rather <br />consistent problem of mixing observational measurements taken during inspections with <br />design elevations, rather than as-built elevations. For example, please refer to the <br />following table. <br />Pond As-built bottom Re orted sed level Comment <br />6A 6972 6967.9 Sed level below actual and bottom <br />7A 6898 6908 Ten feet of sediment in the ond? <br />8 6743 No observation? Missin information <br />9 6895 6892.8 Sed level below actual and bottom <br />9A 6904 6899.8 Sed level below actual and bottom <br />10A 6600 6591 Sed level below actual and bottom <br />The Division suggests that sediment markers be installed based on the design capacity <br />of each pond. Then, using the actual top of the riser and lowest hole design <br />information, the sediment level and remaining capacity can be estimated. It may also <br />