state of utah · hazardous conditions to this structure. 4.b hydrologic balance: sediment ponds and...

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GARY R. HERBERT Governor GREG BELL Lieutenant Governor State of Utah DEPARTMENT OF NATURAL RESOURCES 1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114-5801 telephone (801) 538-5340 facsimile (801) 359-3940 TTY (801) 538-7458 www.ogm.utah.gov MICHAEL R. STYLER Executive Director Division of Oil, Gas and Mining JOHN R. BAZA Division Director November 21, 2017 Howard Strand, Manager Denver Field Branch 1999 Broadway, Suite 3320 Denver, Colorado 80202-3050 Subject: October 2017 OSM Compliance Report Dear Mr. Strand: Attached please find the following October 2017 inspection reports, notice of violations, cessation orders, modifications, terminations, vacations, proposed assessments, finalized assessments, conference requests, hearings held, and fines paid. Inspections Permit # Inspection Date Type Mine Name C/007/0005 10/11/2017 Partial Skyline C/007/0012 10/26/2017 Partial Wellington Prep Plant C/007/0013 10/17/2017 Partial Horse Canyon C/007/0016 10/12/2017 Complete Gordon Creek C/007/0020 10/26/2017 Partial Horizon C/007/0022 10/12/2017 Partial Savage Coal Terminal C/007/0033 10/26/2017 Partial Wildcat Loadout C/007/0035 10/30/2017 Partial Sunnyside Refuse C/007/0039 10/11/2017 Partial Dugout Canyon C/007/0042 10/30/2017 Partial Star Point Refuse C/007/0045 10/05/2017 Partial Wellington Dry-Coal C/015/0007 10/25/2017 Partial Hidden Valley C/015/0009 10/26/2017 Partial Fossil Rock C/015/0015 10/25/2017 Partial Emery Deep C/015/0018 10/19/2017 Partial Deer Creek C/015/0025 09/27/2017 Complete Bear Canyon C/015/0032 10/26/2017 Partial Crandall Canyon C/025/0005 10/03/2017 Partial Coal Hollow C/041/0002 10/05/2017 Partial Sufco

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Page 1: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

GARY R. HERBERT Governor

GREG BELL Lieutenant Governor

State of Utah DEPARTMENT OF NATURAL RESOURCES

1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114-5801 telephone (801) 538-5340 facsimile (801) 359-3940 TTY (801) 538-7458 www.ogm.utah.gov

MICHAEL R. STYLER Executive Director

Division of Oil, Gas and Mining JOHN R. BAZA Division Director

November 21, 2017

Howard Strand, Manager Denver Field Branch 1999 Broadway, Suite 3320 Denver, Colorado 80202-3050 Subject: October 2017 OSM Compliance Report Dear Mr. Strand:

Attached please find the following October 2017 inspection reports, notice of violations, cessation orders, modifications, terminations, vacations, proposed assessments, finalized assessments, conference requests, hearings held, and fines paid.

Inspections Permit # Inspection Date Type Mine Name C/007/0005 10/11/2017 Partial Skyline C/007/0012 10/26/2017 Partial Wellington Prep Plant C/007/0013 10/17/2017 Partial Horse Canyon C/007/0016 10/12/2017 Complete Gordon Creek C/007/0020 10/26/2017 Partial Horizon C/007/0022 10/12/2017 Partial Savage Coal Terminal C/007/0033 10/26/2017 Partial Wildcat Loadout C/007/0035 10/30/2017 Partial Sunnyside Refuse C/007/0039 10/11/2017 Partial Dugout Canyon C/007/0042 10/30/2017 Partial Star Point Refuse C/007/0045 10/05/2017 Partial Wellington Dry-Coal C/015/0007 10/25/2017 Partial Hidden Valley C/015/0009 10/26/2017 Partial Fossil Rock C/015/0015 10/25/2017 Partial Emery Deep C/015/0018 10/19/2017 Partial Deer Creek C/015/0025 09/27/2017 Complete Bear Canyon C/015/0032 10/26/2017 Partial Crandall Canyon C/025/0005 10/03/2017 Partial Coal Hollow C/041/0002 10/05/2017 Partial Sufco

Page 2: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 2 OSM Compliance Report November 21, 2017

Proposed Assessments Permit # Date Issued NOV/CO # Mine Name C/007/0045 09/19/2017 21198 Wellington Dry-Coal NOV/CO Modification Date Permit # Date Issued Date Modified NOV/CO # Mine Name C/007/0019 09/18/2017 10/26/2017 21197 Bear Canyon NOV/CO Termination Date Permit # Date Issued Date Terminated NOV/CO # Mine Name C/007/0045 09/19/2017 10/02/2017 21198 Wellington Dry-Coal

All of the listed inspection reports, modifications, terminations, vacations, assessments and correspondence have been verified by one of the Permit Supervisors.

Sincerely,

Suzanne Steab Engineering Technician II

Page 3: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Inspection Report

C0070005Permit Number:

PARTIAL

Wednesday, October 11, 2017

10/11/2017 12:30:00 PM

Wednesday, September 13, 2017

Inspection Type:

Inspection Date:

End Date/Time:

Last Inspection:

10/11/2017 9:00:00 AMStart Date/Time:

Cloudy, 60's, Dry Conditions

Inspector:

Weather:

Steve Demczak,

DHADDOCK

10/27/2017

Accepted by:

5986InspectionID Report Number:

Representatives Present During the Inspection:

Gregg Galecki CompanySteve Demczak OGM

HC 35 BOX 380, HELPER UT 84526

SKYLINE MINE

CANYON FUEL COMPANY

CANYON FUEL COMPANY

CARBON

Site:

County:

Permitee:

Operator:

Address:

Underground

Surface

Loadout

Processing

Reprocessing

10,958.09

139.81

Current Acreages

Total Permitted

Total Disturbed

Phase I

Phase II

Phase III

Tuesday, October 24, 2017

The mine was active.

The permittee needs to submit photos of the two minor exploration sites when completed.

Report summary and status for pending enforcement actions, permit conditions, Division Orders, and amendments:

Date

39

Inspector's Signature:

Note: This inspection report does not constitute an affidavit of compliance with the regulatory program of the Division of Oil, Gas and Mining.

Steve Demczak,

Federal

State

County

Fee

Other

Mineral Ownership Types of Operations

ACTIVE

PERMANENT COAL PROGRAMPermit Type:

Permit Status:

Inspector ID Number:

Stephen J. Demczak

Page 4: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 2 of 3

Inspection Continuation SheetC0070005Permit Number:

PARTIAL

Wednesday, October 11, 2017

Inspection Type:

Inspection Date:

REVIEW OF PERMIT, PERFORMANCE STANDARDS PERMIT CONDITION REQUIREMENTS

1. Substantiate the elements on this inspection by checking the appropriate performance standard. a. For COMPLETE inspections provide narrative justification for any elements not fully inspected unless element is not appropriate to the site, in which case check Not Applicable. b. For PARTIAL inspections check only the elements evaluated.2. Document any noncompliance situation by reference the NOV issued at the appropriate performance standard listed below.3. Reference any narratives written in conjunction with this inspection at the appropriate performace standard listed below.4. Provide a brief status report for all pending enforcement actions, permit conditions, Divison Orders, and amendments.

CommentEvaluated Not Applicable Enforcement

1. Permits, Change, Transfer, Renewal, Sale

2. Signs and Markers

3. Topsoil

4.a Hydrologic Balance: Diversions

4.b Hydrologic Balance: Sediment Ponds and Impoundments

4.c Hydrologic Balance: Other Sediment Control Measures

4.d Hydrologic Balance: Water Monitoring

4.e Hydrologic Balance: Effluent Limitations

5. Explosives

6. Disposal of Excess Spoil, Fills, Benches

7. Coal Mine Waste, Refuse Piles, Impoundments

8. Noncoal Waste

9. Protection of Fish, Wildlife and Related Environmental Issues

10. Slides and Other Damage

11. Contemporaneous Reclamation

12. Backfilling And Grading

13. Revegetation

14. Subsidence Control

15. Cessation of Operations

16.a Roads: Construction, Maintenance, Surfacing

16.b Roads: Drainage Controls

17. Other Transportation Facilities

18. Support Facilities, Utility Installations

19. AVS Check

20. Air Quality Permit

21. Bonding and Insurance

22. Other

Page 5: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 3 of 3

Inspection Continuation SheetC0070005Permit Number:

PARTIAL

Wednesday, October 11, 2017

Inspection Type:

Inspection Date:

The Division is waiting on Skyline to respond on PMLU & bond release. The response is schedule to be received by the Division by October 31, 2017.

1. Permits, Change, Transfer, Renewal, Sale

The identification sign was inspected and it meets the requirements of the R645 Coal Rules. See Photo

2. Signs and Markers

I inspected the topsoil piles and I did not see any signs of wind or water erosion. The topsoil piles appear to be stable and protected by a berm. See Photo

3. Topsoil

I inspected diversions and culverts throughout the property. They were open and would function as designed during a storm event. The structures were recently re-graded and cleaned out of sediment. See photos

4.a Hydrologic Balance: Diversions

I inspected the sediment pond. It contained some water. The embankments appear to be stable. Inlets and outlets would function as designed. I did not see any hazardous conditions to this structure.

4.b Hydrologic Balance: Sediment Ponds and Impoundments

The property was clear of non-coal waste materials such as oil, trash and grease cans.

8. Noncoal Waste

No slides or other damage was noticed during the inspection. The mine site appears to be stable.

10. Slides and Other Damage

The roads were compacted with no dust control problem.

16.a Roads: Construction, Maintenance, Surfacing

I inspected the road diversions and culverts throughout the property. They were functioning as designed. See Photos

16.b Roads: Drainage Controls

No new facilities constructed since the last inspection.

18. Support Facilities, Utility Installations

Page 6: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 10: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 11: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 12: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 13: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 14: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 15: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Inspection Report

C0070016Permit Number:

COMPLETE

Thursday, October 12, 2017

10/12/2017 1:00:00 PM

Wednesday, August 9, 2017

Inspection Type:

Inspection Date:

End Date/Time:

Last Inspection:

10/12/2017 9:00:00 AMStart Date/Time:

Cloudy, 50's, Dry Conditions

Inspector:

Weather:

Steve Demczak,

DHADDOCK

10/25/2017

Accepted by:

5980InspectionID Report Number:

Representatives Present During the Inspection:

Steve Demczak OGM

HC 35 BOX 380, HELPER UT 84526

GORDON CREEK 2, 7 & 8 MINES

CANYON FUEL COMPANY

CANYON FUEL COMPANY

CARBON

Site:

County:

Permitee:

Operator:

Address:

Underground

Surface

Loadout

Processing

Reprocessing

179.27

34.15

32.52

32.52

0.73

Current Acreages

Total Permitted

Total Disturbed

Phase I

Phase II

Phase III

Monday, October 16, 2017

Inspections are on quarterly bases. These inspections will be complete inspections.

Report summary and status for pending enforcement actions, permit conditions, Division Orders, and amendments:

Date

39

Inspector's Signature:

Note: This inspection report does not constitute an affidavit of compliance with the regulatory program of the Division of Oil, Gas and Mining.

Steve Demczak,

Federal

State

County

Fee

Other

Mineral Ownership Types of Operations

INACTIVE

PERMANENT COAL PROGRAMPermit Type:

Permit Status:

Inspector ID Number:

Stephen J. Demczak

Page 16: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 2 of 4

Inspection Continuation SheetC0070016Permit Number:

COMPLETE

Thursday, October 12, 2017

Inspection Type:

Inspection Date:

REVIEW OF PERMIT, PERFORMANCE STANDARDS PERMIT CONDITION REQUIREMENTS

1. Substantiate the elements on this inspection by checking the appropriate performance standard. a. For COMPLETE inspections provide narrative justification for any elements not fully inspected unless element is not appropriate to the site, in which case check Not Applicable. b. For PARTIAL inspections check only the elements evaluated.2. Document any noncompliance situation by reference the NOV issued at the appropriate performance standard listed below.3. Reference any narratives written in conjunction with this inspection at the appropriate performace standard listed below.4. Provide a brief status report for all pending enforcement actions, permit conditions, Divison Orders, and amendments.

CommentEvaluated Not Applicable Enforcement

1. Permits, Change, Transfer, Renewal, Sale

2. Signs and Markers

3. Topsoil

4.a Hydrologic Balance: Diversions

4.b Hydrologic Balance: Sediment Ponds and Impoundments

4.c Hydrologic Balance: Other Sediment Control Measures

4.d Hydrologic Balance: Water Monitoring

4.e Hydrologic Balance: Effluent Limitations

5. Explosives

6. Disposal of Excess Spoil, Fills, Benches

7. Coal Mine Waste, Refuse Piles, Impoundments

8. Noncoal Waste

9. Protection of Fish, Wildlife and Related Environmental Issues

10. Slides and Other Damage

11. Contemporaneous Reclamation

12. Backfilling And Grading

13. Revegetation

14. Subsidence Control

15. Cessation of Operations

16.a Roads: Construction, Maintenance, Surfacing

16.b Roads: Drainage Controls

17. Other Transportation Facilities

18. Support Facilities, Utility Installations

19. AVS Check

20. Air Quality Permit

21. Bonding and Insurance

22. Other

Page 17: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 3 of 4

Inspection Continuation SheetC0070016Permit Number:

COMPLETE

Thursday, October 12, 2017

Inspection Type:

Inspection Date:

There are no permitting actions with the Division at this time.

1. Permits, Change, Transfer, Renewal, Sale

The identification sign was inspected and it meets the requirements of the R645 Coal Rules. See Photo

2. Signs and Markers

All topsoil was used in reclamation of the mine site.

3. Topsoil

The diversions were open and would function as designed. See photos.

4.a Hydrologic Balance: Diversions

The cattle watering pond was inspected by the permittee. It was reported that the pond was stable with no hazardous conditions.

4.b Hydrologic Balance: Sediment Ponds and Impoundments

Water monitoring information is taken by the permittee and is sent electronically to the Division in Salt Lake City. This information is reviewed and analyzed by the Division staff. A report is written.

4.d Hydrologic Balance: Water Monitoring

The property was clear of non-coal waste materials such as oil, trash and grease cans.

8. Noncoal Waste

No slides or other damage was notid during the inspection.

10. Slides and Other Damage

The reclamation site is completely backfilled and graded.

12. Backfilling And Grading

The access area used to fix diversions has vegetation growing into the pocks. It appears mostly to be grasses. See Photos

13. Revegetation

AVS checks are made in Salt Lake City.

19. AVS Check

Page 18: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 4 of 4

Inspection Continuation SheetC0070016Permit Number:

COMPLETE

Thursday, October 12, 2017

Inspection Type:

Inspection Date:

The bonding amount is $171,000. The insurance policy will expire on February 1, 2018. The policy meets the minimum requirements of the R645 Coal Rules. The producer is National Union Fire with policy number GL 6576428.

21. Bonding and Insurance

Page 19: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 22: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 23: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 24: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 25: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Inspection Report

C0070033Permit Number:

PARTIAL

Thursday, October 26, 2017

10/26/2017 2:00:00 PM

Thursday, September 21, 2017

Inspection Type:

Inspection Date:

End Date/Time:

Last Inspection:

10/26/2017 10:30:00 AMStart Date/Time:

Sunny, 60's,

Inspector:

Weather:

Steve Demczak,

DHADDOCK

11/7/2017

Accepted by:

5990InspectionID Report Number:

Representatives Present During the Inspection:

Kit Pappas CompanySteve Demczak OGM

PO BOX 1, PRICE UT 84501

WILDCAT LOADOUT

INTERMOUNTAIN POWER AGENCY

WILD WEST EQUIPMENT & HAULING, LLC

CARBON

Site:

County:

Permitee:

Operator:

Address:

Underground

Surface

Loadout

Processing

Reprocessing

111.62

111.62

Current Acreages

Total Permitted

Total Disturbed

Phase I

Phase II

Phase III

Tuesday, October 31, 2017

The Wildcat Loadout was vandalized since the last inspection. Copper wiring was stripped out of conduit and electrical equipment. It is estimated the cost of one million dollars to repair equipment and make the facility operational.

Report summary and status for pending enforcement actions, permit conditions, Division Orders, and amendments:

Date

39

Inspector's Signature:

Note: This inspection report does not constitute an affidavit of compliance with the regulatory program of the Division of Oil, Gas and Mining.

Steve Demczak,

Federal

State

County

Fee

Other

Mineral Ownership Types of Operations

INACTIVE

PERMANENT COAL PROGRAMPermit Type:

Permit Status:

Inspector ID Number:

Stephen J. Demczak

Page 26: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 2 of 3

Inspection Continuation SheetC0070033Permit Number:

PARTIAL

Thursday, October 26, 2017

Inspection Type:

Inspection Date:

REVIEW OF PERMIT, PERFORMANCE STANDARDS PERMIT CONDITION REQUIREMENTS

1. Substantiate the elements on this inspection by checking the appropriate performance standard. a. For COMPLETE inspections provide narrative justification for any elements not fully inspected unless element is not appropriate to the site, in which case check Not Applicable. b. For PARTIAL inspections check only the elements evaluated.2. Document any noncompliance situation by reference the NOV issued at the appropriate performance standard listed below.3. Reference any narratives written in conjunction with this inspection at the appropriate performace standard listed below.4. Provide a brief status report for all pending enforcement actions, permit conditions, Divison Orders, and amendments.

CommentEvaluated Not Applicable Enforcement

1. Permits, Change, Transfer, Renewal, Sale

2. Signs and Markers

3. Topsoil

4.a Hydrologic Balance: Diversions

4.b Hydrologic Balance: Sediment Ponds and Impoundments

4.c Hydrologic Balance: Other Sediment Control Measures

4.d Hydrologic Balance: Water Monitoring

4.e Hydrologic Balance: Effluent Limitations

5. Explosives

6. Disposal of Excess Spoil, Fills, Benches

7. Coal Mine Waste, Refuse Piles, Impoundments

8. Noncoal Waste

9. Protection of Fish, Wildlife and Related Environmental Issues

10. Slides and Other Damage

11. Contemporaneous Reclamation

12. Backfilling And Grading

13. Revegetation

14. Subsidence Control

15. Cessation of Operations

16.a Roads: Construction, Maintenance, Surfacing

16.b Roads: Drainage Controls

17. Other Transportation Facilities

18. Support Facilities, Utility Installations

19. AVS Check

20. Air Quality Permit

21. Bonding and Insurance

22. Other

Page 27: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 3 of 3

Inspection Continuation SheetC0070033Permit Number:

PARTIAL

Thursday, October 26, 2017

Inspection Type:

Inspection Date:

There is one permitting action with the Division at this time. It is the “Wildcat Midterm Response”. It is scheduled to be reviewed by Division on October 6th.

1. Permits, Change, Transfer, Renewal, Sale

The identification sign was inspected and it meets the requirements of the R645 Coal Rules. See Photo

2. Signs and Markers

I inspected the topsoil piles and I did not see any signs of wind or water erosion. The topsoil piles appear to be stable and protected by a berm. See Photo

3. Topsoil

The diversions and culverts were open and functioning as designed. Sediment has started to fill within these structures. The permittee had cleaned out several diversions since the last inspection. See Photos

4.a Hydrologic Balance: Diversions

I inspected the sediment ponds throughout the property. They contained some water but were not discharging. It is unlikely these structures will discharge in the near future. The embankments appear to be stable. Inlets and outlets would function as designed. I did not see any hazardous conditions to these structures.

4.b Hydrologic Balance: Sediment Ponds and Impoundments

I inspected the refuse pile and it appears to be stable. I did not notice any hazardous conditions to the embankments. The refuse pile has been inactive for several years. See Photos

7. Coal Mine Waste, Refuse Piles, Impoundments

The property was clear of non-coal waste materials such as oil, trash and grease cans.

8. Noncoal Waste

No slides or other damage was noticed during the inspection. The Loadout appears to be stable.

10. Slides and Other Damage

The roads were compacted with no dust control problem.

16.a Roads: Construction, Maintenance, Surfacing

I inspected the road diversions and culverts throughout the property. They were functioning as designed. See Photos

16.b Roads: Drainage Controls

Page 28: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Inspection Report

C0070035Permit Number:

PARTIAL

Monday, October 30, 2017

10/30/2017 3:00:00 PM

Tuesday, September 26, 2017

Inspection Type:

Inspection Date:

End Date/Time:

Last Inspection:

10/30/2017 12:00:00 PMStart Date/Time:

Sunny, 50's, Dry Conditions

Inspector:

Weather:

Steve Demczak,

DHADDOCK

11/7/2017

Accepted by:

5993InspectionID Report Number:

Representatives Present During the Inspection:

Rusty Netz CompanySteve Demczak OGM

PO BOX 159, SUNNYSIDE UT 84539

SUNNYSIDE REFUSE & SLURRY

SUNNYSIDE COGENERATION ASSOCIATES

SUNNYSIDE COGENERATION ASSOCIATES

CARBON

Site:

County:

Permitee:

Operator:

Address:

Underground

Surface

Loadout

Processing

Reprocessing

241.25

196.65

5.35

5.35

5.35

Current Acreages

Total Permitted

Total Disturbed

Phase I

Phase II

Phase III

Tuesday, October 31, 2017

The power plant was operating; it had been shut down for a scheduled overhaul.

Trucks were unloading coal during the inspection.

Report summary and status for pending enforcement actions, permit conditions, Division Orders, and amendments:

Date

39

Inspector's Signature:

Note: This inspection report does not constitute an affidavit of compliance with the regulatory program of the Division of Oil, Gas and Mining.

Steve Demczak,

Federal

State

County

Fee

Other

Mineral Ownership Types of Operations

ACTIVE

PERMANENT COAL PROGRAMPermit Type:

Permit Status:

Inspector ID Number:

Stephen J. Demczak

Page 29: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 2 of 3

Inspection Continuation SheetC0070035Permit Number:

PARTIAL

Monday, October 30, 2017

Inspection Type:

Inspection Date:

REVIEW OF PERMIT, PERFORMANCE STANDARDS PERMIT CONDITION REQUIREMENTS

1. Substantiate the elements on this inspection by checking the appropriate performance standard. a. For COMPLETE inspections provide narrative justification for any elements not fully inspected unless element is not appropriate to the site, in which case check Not Applicable. b. For PARTIAL inspections check only the elements evaluated.2. Document any noncompliance situation by reference the NOV issued at the appropriate performance standard listed below.3. Reference any narratives written in conjunction with this inspection at the appropriate performace standard listed below.4. Provide a brief status report for all pending enforcement actions, permit conditions, Divison Orders, and amendments.

CommentEvaluated Not Applicable Enforcement

1. Permits, Change, Transfer, Renewal, Sale

2. Signs and Markers

3. Topsoil

4.a Hydrologic Balance: Diversions

4.b Hydrologic Balance: Sediment Ponds and Impoundments

4.c Hydrologic Balance: Other Sediment Control Measures

4.d Hydrologic Balance: Water Monitoring

4.e Hydrologic Balance: Effluent Limitations

5. Explosives

6. Disposal of Excess Spoil, Fills, Benches

7. Coal Mine Waste, Refuse Piles, Impoundments

8. Noncoal Waste

9. Protection of Fish, Wildlife and Related Environmental Issues

10. Slides and Other Damage

11. Contemporaneous Reclamation

12. Backfilling And Grading

13. Revegetation

14. Subsidence Control

15. Cessation of Operations

16.a Roads: Construction, Maintenance, Surfacing

16.b Roads: Drainage Controls

17. Other Transportation Facilities

18. Support Facilities, Utility Installations

19. AVS Check

20. Air Quality Permit

21. Bonding and Insurance

22. Other

Page 30: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 3 of 3

Inspection Continuation SheetC0070035Permit Number:

PARTIAL

Monday, October 30, 2017

Inspection Type:

Inspection Date:

It is scheduled by the Division for permit renewal on February 4, 2018.

1. Permits, Change, Transfer, Renewal, Sale

The identification sign was inspected and it meets the requirements of the R645 Coal Rules. See Photo

2. Signs and Markers

I inspected the topsoil piles and I did not see any signs of wind or water erosion. The topsoil piles appear to be stable and protected by a berm.

3. Topsoil

I inspected diversions and culverts throughout the property. They were open and would function as designed during a storm event. The structures were recently re-graded and cleaned out of sediment. See photos

4.a Hydrologic Balance: Diversions

I inspected the sediment ponds throughout the property. They contained some water but were not discharging. It is unlikely these structures will discharge in the near future. The embankments appear to be stable. Inlets and outlets would function as designed. I did not see any hazardous conditions to these structures.

4.b Hydrologic Balance: Sediment Ponds and Impoundments

I inspected the refuse pile and it appears to be stable. I did not notice any hazardous conditions to the embankments. The refuse pile is active. The permittee was mining some of the refuse for fuel for the power plant.

7. Coal Mine Waste, Refuse Piles, Impoundments

The property was clear of non-coal waste materials such as oil, trash and grease cans.

8. Noncoal Waste

No slides or other damage was noticed during the inspection.

10. Slides and Other Damage

The roads were compacted with no dust control problem.

16.a Roads: Construction, Maintenance, Surfacing

I inspected the road diversions and culverts throughout the property. They were functioning as designed. See Photos

16.b Roads: Drainage Controls

Page 31: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 32: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 33: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 34: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Inspection Report

C0070042Permit Number:

PARTIAL

Monday, October 30, 2017

10/30/2017 12:00:00 PM

Tuesday, September 26, 2017

Inspection Type:

Inspection Date:

End Date/Time:

Last Inspection:

10/30/2017 9:00:00 AMStart Date/Time:

Sunny, 50's, Dry Conditions

Inspector:

Weather:

Steve Demczak,

DHADDOCK

11/7/2017

Accepted by:

5992InspectionID Report Number:

Representatives Present During the Inspection:

Rusty Netz CompanySteve Demczak OGM

PO BOX 159, SUNNYSIDE UT 84539

STAR POINT REFUSE

SUNNYSIDE COGENERATION ASSOCIATES

SUNNYSIDE COGENERATION ASSOCIATES

CARBON

Site:

County:

Permitee:

Operator:

Address:

Underground

Surface

Loadout

Processing

Reprocessing

152.93

152.93

Current Acreages

Total Permitted

Total Disturbed

Phase I

Phase II

Phase III

Tuesday, October 31, 2017

The refuse pile was active. Material/refuse is piled up for loading into trucks. A portion of the refuse pile is almost at the level of the sediment pond located on the backside of the refuse pile.

Report summary and status for pending enforcement actions, permit conditions, Division Orders, and amendments:

Date

39

Inspector's Signature:

Note: This inspection report does not constitute an affidavit of compliance with the regulatory program of the Division of Oil, Gas and Mining.

Steve Demczak,

Federal

State

County

Fee

Other

Mineral Ownership Types of Operations

ACTIVE

PERMANENT COAL PROGRAMPermit Type:

Permit Status:

Inspector ID Number:

Stephen J. Demczak

Page 35: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 2 of 3

Inspection Continuation SheetC0070042Permit Number:

PARTIAL

Monday, October 30, 2017

Inspection Type:

Inspection Date:

REVIEW OF PERMIT, PERFORMANCE STANDARDS PERMIT CONDITION REQUIREMENTS

1. Substantiate the elements on this inspection by checking the appropriate performance standard. a. For COMPLETE inspections provide narrative justification for any elements not fully inspected unless element is not appropriate to the site, in which case check Not Applicable. b. For PARTIAL inspections check only the elements evaluated.2. Document any noncompliance situation by reference the NOV issued at the appropriate performance standard listed below.3. Reference any narratives written in conjunction with this inspection at the appropriate performace standard listed below.4. Provide a brief status report for all pending enforcement actions, permit conditions, Divison Orders, and amendments.

CommentEvaluated Not Applicable Enforcement

1. Permits, Change, Transfer, Renewal, Sale

2. Signs and Markers

3. Topsoil

4.a Hydrologic Balance: Diversions

4.b Hydrologic Balance: Sediment Ponds and Impoundments

4.c Hydrologic Balance: Other Sediment Control Measures

4.d Hydrologic Balance: Water Monitoring

4.e Hydrologic Balance: Effluent Limitations

5. Explosives

6. Disposal of Excess Spoil, Fills, Benches

7. Coal Mine Waste, Refuse Piles, Impoundments

8. Noncoal Waste

9. Protection of Fish, Wildlife and Related Environmental Issues

10. Slides and Other Damage

11. Contemporaneous Reclamation

12. Backfilling And Grading

13. Revegetation

14. Subsidence Control

15. Cessation of Operations

16.a Roads: Construction, Maintenance, Surfacing

16.b Roads: Drainage Controls

17. Other Transportation Facilities

18. Support Facilities, Utility Installations

19. AVS Check

20. Air Quality Permit

21. Bonding and Insurance

22. Other

Page 36: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 3 of 3

Inspection Continuation SheetC0070042Permit Number:

PARTIAL

Monday, October 30, 2017

Inspection Type:

Inspection Date:

There are no permiting actions with the Division at this time.

1. Permits, Change, Transfer, Renewal, Sale

The identification sign was inspected and it meets the requirements of the R645 Coal Rules. See Photo

2. Signs and Markers

I inspected diversions and culverts throughout the property. They were open and would function as designed during a storm event. The structures were recently re-graded and cleaned out of sediment. See photos

4.a Hydrologic Balance: Diversions

I inspected the sediment ponds throughout the property. They contained some water but were not discharging. It is unlikely these structures will discharge in the near future. The embankments appear to be stable. Inlets and outlets would function as designed. I did not see any hazardous conditions to these structures.

4.b Hydrologic Balance: Sediment Ponds and Impoundments

I inspected the refuse pile and it appears to be stable. I did not notice any hazardous conditions to the embankments. The refuse pile is active.

7. Coal Mine Waste, Refuse Piles, Impoundments

The property was clear of non-coal waste materials such as oil, trash and grease cans.

8. Noncoal Waste

No slides or other damage was noticed during the inspection.

10. Slides and Other Damage

The roads were compacted with no dust control problem. The roads were wet and had been recently watered.

16.a Roads: Construction, Maintenance, Surfacing

I inspected the road diversions and culverts throughout the property. They were functioning as designed. See Photos

16.b Roads: Drainage Controls

AVS checks are made in Salt Lake City.

19. AVS Check

Page 37: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Inspection Report

C0070045Permit Number:

PARTIAL

Thursday, October 5, 2017

10/5/2017 11:00:00 AM

Monday, September 18, 2017

Inspection Type:

Inspection Date:

End Date/Time:

Last Inspection:

10/5/2017 9:00:00 AMStart Date/Time:

Partly cloudy, 70/s, Dry Conditions

Inspector:

Weather:

Steve Demczak,

DHADDOCK

10/25/2017

Accepted by:

5985InspectionID Report Number:

Representatives Present During the Inspection:

Steve Demczak OGM

1865 WEST RIDGE ROAD, WELLINGTON UT 84654

WELLINGTON DRY-COAL CLEANING FACILITY

BRC WELLINGTON, LLC

BOWIE REFINED COAL, LLC

CARBON

Site:

County:

Permitee:

Operator:

Address:

Underground

Surface

Loadout

Processing

Reprocessing

30.00

30.00

Current Acreages

Total Permitted

Total Disturbed

Phase I

Phase II

Phase III

Tuesday, October 24, 2017

The loadout was active. The required bonding amount is in place and the Cessatiion Order was terminated.

Report summary and status for pending enforcement actions, permit conditions, Division Orders, and amendments:

Date

39

Inspector's Signature:

Note: This inspection report does not constitute an affidavit of compliance with the regulatory program of the Division of Oil, Gas and Mining.

Steve Demczak,

Federal

State

County

Fee

Other

Mineral Ownership Types of Operations

ACTIVE

PERMANENT COAL PROGRAMPermit Type:

Permit Status:

Inspector ID Number:

Stephen J. Demczak

Page 38: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 2 of 4

Inspection Continuation SheetC0070045Permit Number:

PARTIAL

Thursday, October 5, 2017

Inspection Type:

Inspection Date:

REVIEW OF PERMIT, PERFORMANCE STANDARDS PERMIT CONDITION REQUIREMENTS

1. Substantiate the elements on this inspection by checking the appropriate performance standard. a. For COMPLETE inspections provide narrative justification for any elements not fully inspected unless element is not appropriate to the site, in which case check Not Applicable. b. For PARTIAL inspections check only the elements evaluated.2. Document any noncompliance situation by reference the NOV issued at the appropriate performance standard listed below.3. Reference any narratives written in conjunction with this inspection at the appropriate performace standard listed below.4. Provide a brief status report for all pending enforcement actions, permit conditions, Divison Orders, and amendments.

CommentEvaluated Not Applicable Enforcement

1. Permits, Change, Transfer, Renewal, Sale

2. Signs and Markers

3. Topsoil

4.a Hydrologic Balance: Diversions

4.b Hydrologic Balance: Sediment Ponds and Impoundments

4.c Hydrologic Balance: Other Sediment Control Measures

4.d Hydrologic Balance: Water Monitoring

4.e Hydrologic Balance: Effluent Limitations

5. Explosives

6. Disposal of Excess Spoil, Fills, Benches

7. Coal Mine Waste, Refuse Piles, Impoundments

8. Noncoal Waste

9. Protection of Fish, Wildlife and Related Environmental Issues

10. Slides and Other Damage

11. Contemporaneous Reclamation

12. Backfilling And Grading

13. Revegetation

14. Subsidence Control

15. Cessation of Operations

16.a Roads: Construction, Maintenance, Surfacing

16.b Roads: Drainage Controls

17. Other Transportation Facilities

18. Support Facilities, Utility Installations

19. AVS Check

20. Air Quality Permit

21. Bonding and Insurance

22. Other

Page 39: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 3 of 4

Inspection Continuation SheetC0070045Permit Number:

PARTIAL

Thursday, October 5, 2017

Inspection Type:

Inspection Date:

There are no permitting actions with the Division at this time. The permittee will need to respond to the mid-term review by the Division.

1. Permits, Change, Transfer, Renewal, Sale

The identification sign was inspected and it meets the requirements of the R645 Coal Rules. See Photo

2. Signs and Markers

I inspected the topsoil piles and I did not see any signs of wind or water erosion. The topsoil piles appear to be stable and protected by a berm. See Photo

3. Topsoil

I inspected diversions and culverts throughout the property. They were open and would function as designed during a storm event. The structures were recently re-graded and cleaned out of sediment. See photos

4.a Hydrologic Balance: Diversions

I inspected the sediment ponds throughout the property. They contained some water but were not discharging. It is unlikely these structures will discharge in the near future. The embankments appear to be stable. Inlets and outlets would function as designed. I did not see any hazardous conditions to these structures.

4.b Hydrologic Balance: Sediment Ponds and Impoundments

The high ash coal piles have been bonded. The Cessation Order #21198 has been terminated. These piles are stable.

7. Coal Mine Waste, Refuse Piles, Impoundments

The property was clear of non-coal waste materials such as oil, trash and grease cans.

8. Noncoal Waste

Antelope were grazing on the other side of the fence line.

9. Protection of Fish, Wildlife and Related Environmental Issues

No slides or other damage was noticed during the inspection. The Loadout appears to be stable.

10. Slides and Other Damage

The roads were compacted with no dust control problem. The roads were wet and had been recently watered.

16.a Roads: Construction, Maintenance, Surfacing

Page 40: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 4 of 4

Inspection Continuation SheetC0070045Permit Number:

PARTIAL

Thursday, October 5, 2017

Inspection Type:

Inspection Date:

I inspected the road diversions and culverts throughout the property. They were functioning as designed. See Photos

16.b Roads: Drainage Controls

No new facilities constructed since the last inspection.

18. Support Facilities, Utility Installations

Page 41: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 42: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 43: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 46: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 47: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Inspection Report

C0150015Permit Number:

PARTIAL

Wednesday, October 25, 2017

10/25/2017 4:00:00 PM

Wednesday, September 20, 2017

Inspection Type:

Inspection Date:

End Date/Time:

Last Inspection:

10/25/2017 9:00:00 AMStart Date/Time:

Sunny, 60's, Dry Conditions

Inspector:

Weather:

Steve Demczak,

DHADDOCK

11/7/2017

Accepted by:

5991InspectionID Report Number:

Representatives Present During the Inspection:

Kit Pappas CompanySteve Demczak OGM

PO BOX 527, EMERY UT 84522

EMERY DEEP MINE

BRONCO UTAH OPERATIONS, LLC

BRONCO UTAH OPERATIONS, LLC

EMERY

Site:

County:

Permitee:

Operator:

Address:

Underground

Surface

Loadout

Processing

Reprocessing

473.80

85.90

Current Acreages

Total Permitted

Total Disturbed

Phase I

Phase II

Phase III

Tuesday, October 31, 2017

The mine was active mining coal. Coal trucks were loading out coal during the inspection.

All environmental structures are installed at the new portal facility.

Report summary and status for pending enforcement actions, permit conditions, Division Orders, and amendments:

Date

39

Inspector's Signature:

Note: This inspection report does not constitute an affidavit of compliance with the regulatory program of the Division of Oil, Gas and Mining.

Steve Demczak,

Federal

State

County

Fee

Other

Mineral Ownership Types of Operations

ACTIVE

PERMANENT COAL PROGRAMPermit Type:

Permit Status:

Inspector ID Number:

Stephen J. Demczak

Page 48: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 2 of 3

Inspection Continuation SheetC0150015Permit Number:

PARTIAL

Wednesday, October 25, 2017

Inspection Type:

Inspection Date:

REVIEW OF PERMIT, PERFORMANCE STANDARDS PERMIT CONDITION REQUIREMENTS

1. Substantiate the elements on this inspection by checking the appropriate performance standard. a. For COMPLETE inspections provide narrative justification for any elements not fully inspected unless element is not appropriate to the site, in which case check Not Applicable. b. For PARTIAL inspections check only the elements evaluated.2. Document any noncompliance situation by reference the NOV issued at the appropriate performance standard listed below.3. Reference any narratives written in conjunction with this inspection at the appropriate performace standard listed below.4. Provide a brief status report for all pending enforcement actions, permit conditions, Divison Orders, and amendments.

CommentEvaluated Not Applicable Enforcement

1. Permits, Change, Transfer, Renewal, Sale

2. Signs and Markers

3. Topsoil

4.a Hydrologic Balance: Diversions

4.b Hydrologic Balance: Sediment Ponds and Impoundments

4.c Hydrologic Balance: Other Sediment Control Measures

4.d Hydrologic Balance: Water Monitoring

4.e Hydrologic Balance: Effluent Limitations

5. Explosives

6. Disposal of Excess Spoil, Fills, Benches

7. Coal Mine Waste, Refuse Piles, Impoundments

8. Noncoal Waste

9. Protection of Fish, Wildlife and Related Environmental Issues

10. Slides and Other Damage

11. Contemporaneous Reclamation

12. Backfilling And Grading

13. Revegetation

14. Subsidence Control

15. Cessation of Operations

16.a Roads: Construction, Maintenance, Surfacing

16.b Roads: Drainage Controls

17. Other Transportation Facilities

18. Support Facilities, Utility Installations

19. AVS Check

20. Air Quality Permit

21. Bonding and Insurance

22. Other

Page 49: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 3 of 3

Inspection Continuation SheetC0150015Permit Number:

PARTIAL

Wednesday, October 25, 2017

Inspection Type:

Inspection Date:

There are no permitting actions with the Division at this time.

1. Permits, Change, Transfer, Renewal, Sale

The identification sign was inspected and it meets the requirements of the R645 Coal Rules. See Photo

2. Signs and Markers

I inspected diversions and culverts throughout the property. They were open and would function as designed during a storm event. The structures were recently re-graded and cleaned out of sediment. See photos

4.a Hydrologic Balance: Diversions

I inspected the sediment ponds throughout the property. They did not contain water. It is unlikely these structures will discharge in the near future. The embankments appear to be stable. Inlets and outlets would function as designed. I did not see any hazardous conditions to these structures. The permittee rip rapped the inlets to the coal storage sediment pond. See Photo

4.b Hydrologic Balance: Sediment Ponds and Impoundments

I inspected the refuse pile and it appears to be stable. I did not notice any hazardous conditions to the embankments. The refuse pile is active. See Photos

7. Coal Mine Waste, Refuse Piles, Impoundments

The property was clear of non-coal waste materials such as oil, trash and grease cans.

8. Noncoal Waste

No slides or other damage was notice during the inspection. The mine site appears to be stable.

10. Slides and Other Damage

The roads were compacted with no dust control problem.

16.a Roads: Construction, Maintenance, Surfacing

I inspected the road diversions and culverts throughout the property. They were functioning as designed. See Photos

16.b Roads: Drainage Controls

No new facilities constructed since the last inspection.

18. Support Facilities, Utility Installations

Page 50: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 51: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 52: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 53: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Inspection Report

C0150025Permit Number:

COMPLETE

Wednesday, September 27, 2017

10/24/2017 12:00:00 PM

Inspection Type:

Inspection Date:

End Date/Time:

Last Inspection:

9/27/2017 8:00:00 AMStart Date/Time:

Sunny 70's

Inspector:

Weather:

Joe Helfrich,

DHADDOCK

11/7/2017

Accepted by:

5975InspectionID Report Number:

Representatives Present During the Inspection:

Jaren Jorgensen CompanyJoe Helfrich OGM

2352 NORTH 7TH STREET, UNIT B, GRAND JUNCTION CO 81501

BEAR CANYON MINE

CASTLE VALLEY MINING LLC

CASTLE VALLEY MINING LLC

EMERY

Site:

County:

Permitee:

Operator:

Address:

Underground

Surface

Loadout

Processing

Reprocessing

10,991.83

35.02

Current Acreages

Total Permitted

Total Disturbed

Phase I

Phase II

Phase III

Tuesday, October 24, 2017

The purpose of this site visit was to conduct a complete inspection at the Bear Canyon mine. There were representatives from Rhino's corporate office at the mine at the time of the inspection on September 27th. Therefore the inspection was conducted on two separate site visits, 9/27 and 10/24. The majority of the paper work portion of the inspection was completed on 9/27.

Report summary and status for pending enforcement actions, permit conditions, Division Orders, and amendments:

Date

1

Inspector's Signature:

Note: This inspection report does not constitute an affidavit of compliance with the regulatory program of the Division of Oil, Gas and Mining.

Joe Helfrich,

Federal

State

County

Fee

Other

Mineral Ownership Types of Operations

ACTIVE

PERMANENT COAL PROGRAMPermit Type:

Permit Status:

Inspector ID Number:

Page 54: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 2 of 4

Inspection Continuation SheetC0150025Permit Number:

COMPLETE

Wednesday, September 27, 2017

Inspection Type:

Inspection Date:

REVIEW OF PERMIT, PERFORMANCE STANDARDS PERMIT CONDITION REQUIREMENTS

1. Substantiate the elements on this inspection by checking the appropriate performance standard. a. For COMPLETE inspections provide narrative justification for any elements not fully inspected unless element is not appropriate to the site, in which case check Not Applicable. b. For PARTIAL inspections check only the elements evaluated.2. Document any noncompliance situation by reference the NOV issued at the appropriate performance standard listed below.3. Reference any narratives written in conjunction with this inspection at the appropriate performace standard listed below.4. Provide a brief status report for all pending enforcement actions, permit conditions, Divison Orders, and amendments.

CommentEvaluated Not Applicable Enforcement

1. Permits, Change, Transfer, Renewal, Sale

2. Signs and Markers

3. Topsoil

4.a Hydrologic Balance: Diversions

4.b Hydrologic Balance: Sediment Ponds and Impoundments

4.c Hydrologic Balance: Other Sediment Control Measures

4.d Hydrologic Balance: Water Monitoring

4.e Hydrologic Balance: Effluent Limitations

5. Explosives

6. Disposal of Excess Spoil, Fills, Benches

7. Coal Mine Waste, Refuse Piles, Impoundments

8. Noncoal Waste

9. Protection of Fish, Wildlife and Related Environmental Issues

10. Slides and Other Damage

11. Contemporaneous Reclamation

12. Backfilling And Grading

13. Revegetation

14. Subsidence Control

15. Cessation of Operations

16.a Roads: Construction, Maintenance, Surfacing

16.b Roads: Drainage Controls

17. Other Transportation Facilities

18. Support Facilities, Utility Installations

19. AVS Check

20. Air Quality Permit

21. Bonding and Insurance

22. Other

Page 55: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 3 of 4

Inspection Continuation SheetC0150025Permit Number:

COMPLETE

Wednesday, September 27, 2017

Inspection Type:

Inspection Date:

There are no pending permitting actions. Rhino Energy is preparing an amendment to permit a waste rock site near the ball park. The site will include the ball park and areas adjacent to Bear creek on either side of the park (4-6 acres total). Other options include permitting Pacificorps Deer Creek waste rock site.

1. Permits, Change, Transfer, Renewal, Sale

The sign at the entrance to the mine was clearly visible and contained the required information.

2. Signs and Markers

The permittee has completed an as-built survey for the reconfigured stockpile near the conveyor. The up-dated map was a requirement from the 2017 annual report and is being prepared for submittal to the Division.

3. Topsoil

The culverts and ditches in the main surface facility were open and functioning adequately at the time of this complete inspection.

4.a Hydrologic Balance: Diversions

Quarterly inspections for the 4 sediment ponds were conducted on 9/1 and certified by Tom Paluso (certified PE for EIS). The inspection reports for the ponds noted that they were stable and showed no signs of structural weakness.

4.b Hydrologic Balance: Sediment Ponds and Impoundments

Water monitoring data for the third quarter of 2017 were available for inspection. Water monitoring points for this quarter included BC 1, 2, 3 and 4, CK 1, and 2, SBC 4, 5 , 9a, 17, well SBC 3 (fl 1,2,3,4,5,6,7 and 8 are done weekly), and the 004 discharge point. The data for the second quarter has been submitted electronically into the Division's data base. No exceedences of the required parameters were noted.

4.d Hydrologic Balance: Water Monitoring

DMR's were current through August, 2017. They include the four sediment ponds 002, 003, 006 and 007, (no discharge)and outfall 004,(the mine water discharge). There were no excedances of the required parameters.

4.e Hydrologic Balance: Effluent Limitations

Non coal waste is being managed quite well, the site was free of debris and trash was well contained in the dumpsters. Areas inspected included the main mine facilities and the # 3 and 4 mine portal pads.

8. Noncoal Waste

Page 56: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 4 of 4

Inspection Continuation SheetC0150025Permit Number:

COMPLETE

Wednesday, September 27, 2017

Inspection Type:

Inspection Date:

Subsidence monitoring is included in the annual report. There is typically little or no subsidence generated from mining activities at the mine.

14. Subsidence Control

The drainage controls for the roads throughout the site were in good repair and were being maintained properlyat the time of the inspection.

16.b Roads: Drainage Controls

The ownership and control infromation is current and updated annualy in the annual report.

19. AVS Check

The air quality permit DAQE-GN0102400005-10 was transferred into Castle Valley Mining LLC. on 09/20/2010 and remains in effect.

20. Air Quality Permit

Surety Bond # 929518448 is posted in the amount of $2,210,000 for Castle Valley Mining LLC. The liability insurance expires 6/1/2018.

21. Bonding and Insurance

Page 57: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 58: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 59: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 60: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Inspection Report

C0250005Permit Number:

PARTIAL

Tuesday, October 3, 2017

10/3/2017 2:00:00 PM

Wednesday, September 6, 2017

Inspection Type:

Inspection Date:

End Date/Time:

Last Inspection:

10/3/2017 8:00:00 AMStart Date/Time:

Sunny, 60's, Dry Conditions

Inspector:

Weather:

Steve Demczak,

DHADDOCK

10/25/2017

Accepted by:

5979InspectionID Report Number:

Representatives Present During the Inspection:

Kirk Nicholes CompanyLarry Johnson CompanySteve Demczak OGM

463 North 100 West, Suite 1, CEDAR CITY UT 84720

COAL HOLLOW

ALTON COAL DEVELOPMENT LLC

ALTON COAL DEVELOPMENT LLC

KANE

Site:

County:

Permitee:

Operator:

Address:

Underground

Surface

Loadout

Processing

Reprocessing

1,017.15

443.00

195.00

77.00

Current Acreages

Total Permitted

Total Disturbed

Phase I

Phase II

Phase III

Monday, October 16, 2017

The mine was active, mining in Pit 9 & 10. Backfilling was taking place in Pit 9.

Report summary and status for pending enforcement actions, permit conditions, Division Orders, and amendments:

Date

39

Inspector's Signature:

Note: This inspection report does not constitute an affidavit of compliance with the regulatory program of the Division of Oil, Gas and Mining.

Steve Demczak,

Federal

State

County

Fee

Other

Mineral Ownership Types of Operations

ACTIVE

PERMANENT COAL PROGRAMPermit Type:

Permit Status:

Inspector ID Number:

Stephen J. Demczak

Page 61: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 2 of 4

Inspection Continuation SheetC0250005Permit Number:

PARTIAL

Tuesday, October 3, 2017

Inspection Type:

Inspection Date:

REVIEW OF PERMIT, PERFORMANCE STANDARDS PERMIT CONDITION REQUIREMENTS

1. Substantiate the elements on this inspection by checking the appropriate performance standard. a. For COMPLETE inspections provide narrative justification for any elements not fully inspected unless element is not appropriate to the site, in which case check Not Applicable. b. For PARTIAL inspections check only the elements evaluated.2. Document any noncompliance situation by reference the NOV issued at the appropriate performance standard listed below.3. Reference any narratives written in conjunction with this inspection at the appropriate performace standard listed below.4. Provide a brief status report for all pending enforcement actions, permit conditions, Divison Orders, and amendments.

CommentEvaluated Not Applicable Enforcement

1. Permits, Change, Transfer, Renewal, Sale

2. Signs and Markers

3. Topsoil

4.a Hydrologic Balance: Diversions

4.b Hydrologic Balance: Sediment Ponds and Impoundments

4.c Hydrologic Balance: Other Sediment Control Measures

4.d Hydrologic Balance: Water Monitoring

4.e Hydrologic Balance: Effluent Limitations

5. Explosives

6. Disposal of Excess Spoil, Fills, Benches

7. Coal Mine Waste, Refuse Piles, Impoundments

8. Noncoal Waste

9. Protection of Fish, Wildlife and Related Environmental Issues

10. Slides and Other Damage

11. Contemporaneous Reclamation

12. Backfilling And Grading

13. Revegetation

14. Subsidence Control

15. Cessation of Operations

16.a Roads: Construction, Maintenance, Surfacing

16.b Roads: Drainage Controls

17. Other Transportation Facilities

18. Support Facilities, Utility Installations

19. AVS Check

20. Air Quality Permit

21. Bonding and Insurance

22. Other

Page 62: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 3 of 4

Inspection Continuation SheetC0250005Permit Number:

PARTIAL

Tuesday, October 3, 2017

Inspection Type:

Inspection Date:

There are two reviews with the Division. These are Coal Hollow Annual Report Completion (10/26) and Coal Hollow Pond #7 Certification (11/8).

1. Permits, Change, Transfer, Renewal, Sale

The identification sign was inspected and it meets the requirements of the R645 Coal Rules. See Photo

2. Signs and Markers

I inspected the topsoil piles and I did not see any signs of wind or water erosion. The topsoil piles appear to be stable and protected by a berm.

3. Topsoil

I inspected diversions and culverts throughout the property. They were open and would function as designed during a storm event. The structures were recently re-graded and cleaned out of sediment. See photos

4.a Hydrologic Balance: Diversions

I inspected the sediment ponds throughout the property. They contained some water but were not discharging. It is unlikely these structures will discharge in the near future. The embankments appear to be stable. Inlets and outlets would function as designed. I did not see any hazardous conditions to these structures. Permittee still has plans in cleaning sediment ponds 1, 1b and 3 this fall.

4.b Hydrologic Balance: Sediment Ponds and Impoundments

Straw bales were functioning as designed by the gate to the property.

4.c Hydrologic Balance: Other Sediment Control Measures

The permittee was backfilling spoil material into pit #9.

6. Disposal of Excess Spoil, Fills, Benches

The property was clear of non-coal waste materials such as oil, trash and grease cans.

8. Noncoal Waste

No slides or other damage was notid during the inspection. The mine site appears to be stable.

10. Slides and Other Damage

Pit #9 was being backfill during the inspection.

12. Backfilling And Grading

Page 63: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

Page 4 of 4

Inspection Continuation SheetC0250005Permit Number:

PARTIAL

Tuesday, October 3, 2017

Inspection Type:

Inspection Date:

Seeding is scheduled this fall at Borrow area #1 and surrounding area.

13. Revegetation

The roads were compacted with no dust control problem.

16.a Roads: Construction, Maintenance, Surfacing

I inspected the road diversions and culverts throughout the property. They were functioning as designed. See Photos

16.b Roads: Drainage Controls

No new facilities constructed since the last inspection.

18. Support Facilities, Utility Installations

Page 64: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 66: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash

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Page 67: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash
Page 68: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash
Page 69: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash
Page 70: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash
Page 71: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash
Page 72: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash
Page 73: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash
Page 74: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash
Page 75: State of Utah · hazardous conditions to this structure. 4.b Hydrologic Balance: Sediment Ponds and Impoundments The property was clear of non-coal waste materials such as oil, trash