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September 23,2013 C-1981-019/Colowyo Coal Mine RDZ Inspection Topic Summary NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable Y -Air Resource Protection R -Roads Y -Availability of Records R -Reclamation Success Y -Backfill& Grading R -Revegetation R -Excess Spoil and Dev.Waste NA - Subsidence R -Explosives R - Slides and Other Damage Y -Fish&Wildlife R - Support Facilities On-site R -Hydrologic Balance Y - Signs and Markers R -Gen. Compliance With Mine Plan NA - Support Facilities Not On-site R -Other NA - Special Categories Of Mining NA -Processing Waste R -Topsoil COMMENTS A complete inspection was conducted by Rob Zuber of DRMS on September 23,24, and 25,2013. Colowyo employees who participated in the field inspection included Elliott Russell(September 23) and Kurt Blunt(24th and 25th). The weather was clear on all three days. The ground was muddy. Strong winds were experienced on September 25. Mining and reclamation activities on site included: • In the South Taylor Pit,near the north end, a Komatsu loader was loading FA Seam coal into trucks. In the upper portion of the pit(further south),E Seem coal had recently been shot and was in a loose pile. • Scrapers continue to work on the West Pit spoil pile—reclamation is nearly done in this area("Hink's Peak"). • The 115 excavator and a dozer were working on the upper portion of the West Taylor Fill. All draglines were idle during the inspection. EXCESS SPOIL and DEVELOPMENT WASTE—Rule 4.09 Placement; Drainage Control; Surface Stabilization: Rills have been repaired on the surface of the West Taylor Fill and have not opened up again(as seen from the West Taylor Pond), and vegetation is growing in these areas. The side drains of this fill remain stable. As noted above,the 115 excavator and a dozer were working on the upper portion of the West Taylor Fill. EXPLOSIVES—Rule 4.08 Distance Prohibitions 4.08.4;Warnings 4.08.4;Control of Adverse Effects 4.08.4: An overburden shot(appeared to be D Seam)was observed in the West Pit on September 23. Safety procedures(sirens,radio communication,blockers)were in order. Number of Partial Inspection this Fiscal Year: 3 Number of Complete Inspections this Fiscal Year: 1 Page 2 of 10