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October 24,2013 C-1981-016/Hawk Nest E&W JRS Inspection Topic Summary NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable N -Air Resource Protection NA -Roads NA -Availability of Records R -Reclamation Success R -Backfill& Grading N -Revegetation NA -Excess Spoil and Dev. Waste N - Subsidence NA -Explosives N - Slides and Other Damage N -Fish&Wildlife NA - Support Facilities On-site R -Hydrologic Balance NA - Signs and Markers NA -Gen. Compliance With Mine Plan NA - Support Facilities Not On-site R -Other NA - Special Categories Of Mining NA -Processing Waste NA -Topsoil COMMENTS This was a complete inspection of the Hawk's Nest East and West Mines conducted by Jim Stark of the Colorado Division of Reclamation,Mining and Safety. Howard Strand,representing the Office of Surface Mining(OSM), Kathy Welt,representing Mountain Coal Company,LLC(an adjacent landowner) and Jason Timbreza(a landowner) accompanied me on the inspection. The Division revoked the permit,forfeited the bond and completed all of the reclamation at the site. The reason for the inspection was to assess the reclamation for a potential termination of jurisdiction for the site. The termination of jurisdiction inspection assessed all three phases of the bond release process,including backfilling and rough grading,drainage control reestablishment, vegetation to control erosion and vegetation diversity. There were four areas that were inspected. These were,in the order they were inspected,the East Mine,the Bleeder Entries,the West Mine and the Guest House. The Hawk's Nest East and West Mines include approximately 2,050 permitted acres, 513.0 affected acres and 29.4 disturbed acres. The disturbed acreage includes approximately 14.5 acres each at the East and West Mines and approximately 0.5 acres at the Bleeder Entries. The Guest House area is not included in these disturbed acre figures. There are no bond monies remaining at the Hawk's Nest East and West Mines. The weather started out cool then warmed up as the inspection progressed and the ground was dry. BACKFILL and GRADING—Rule 4.14 Contemporaneous Reclamation 4.14.1;Approximate Original Contour 4.14.2; Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2,4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: -The East Mine area includes the portal area located above old Colorado Highway 133 and the facilities area located below old Highway 133. Both of these areas were backfilled and well graded. The regraded areas were well blended into the surrounding undisturbed areas and the old Highway 133. There was no settling, slumping or cracking noted in any of the regraded slopes at the East Mine. -The Bleeder Entries are located between the East and West Mine areas and are above old Highway 133. The areas are well graded and blend well into the surrounding undisturbed areas and old Highway 133. The area is very steep but there were no signs of settling, slumping or cracking at the regraded Bleeder Entry slopes. -The West Mine area includes the portal area located above old Highway 133 and the facilities area located below old Highway 133. Both of these areas were backfilled and well graded. The regraded areas were well blended into the surrounding undisturbed areas and the old Highway 133. There was no settling, slumping or cracking Number of Partial Inspection this Fiscal Year: 0 Number of Complete Inspections this Fiscal Year: 2 Page 2 of 18