2013-10-29_INSPECTION - C1980007

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Mountain Coal Compan (� MCC) /West Elk Mine Bond Release Inspection (Phase I, SL -5) Colorado Division of Reclamation, Mining and Safety (DRMS) Permit ID # C- 1980 -007 Wednesday June 19th, and Thursday June 20th, 2013; 8:00 AM — 5:00 PM Participants: RECEIVED Jessica Loveland, MCC Dan Gray, USFS (first day only of the inspection) OCT 2 9 2013 Jim Stark, DRMS Howard Strand, OSMRE Division of Reclamation, Mining & Safety I participated in a partial Phase I bond release inspection at the West Elk Mine. DRMS administers the bond release process in part through the State- Federal Cooperative Agreement found at 30 CFR, Part 906.30. Weather conditions were hot, dry, and windy. Prior to the inspection I reviewed the bond release application dated February 8, 2013. The application and subsequent correspondence in the record document that Jessica Loveland provided notifications of the bond release inspection as required by Colorado Rule 3, Performance Bond Requirements. These notifications included the surface owners of the permit area proposed for release, surface landowners adjacent to the permit area, local, State, and Federal governmental agencies, utility companies, and the public at large. The purpose of this inspection was to gather evidence of reclamation pertaining to the pending partial Phase I Bond Release on 13.85 acres of reclaimed land at the West Elk Mine. The partial bond release request is for backfilling, regrading, and drainage control on 24 drill pad locations for exploration sites and methane drainage wells (MDW), and approximately 2.1 miles of access roads that have been reclaimed within the area of Box Canyon and the Dry Fork of Minnesota Creek. The reclamation work was performed during 2011 and 2012 and also included proper plugging and abandonment of drill holes. In addition, the sites and roads being considered for bond release have been revegetated using variations of seeding, fertilizing, mulching, and installation/application of straw and matting blankets. A current reclamation bond in the amount of $15,000,000.00 is in place, and is in the form of two corporate surety bonds. Of this amount, $94,475.40 is being requested for release. Surface ownership of the mine is Federal (USFS) and the coal mined was Federal (BLM). The site has an approved rangeland and wildlife habitat post- mining land use. The inspection began on the morning of June 19th with the participants meeting in MCC's offices. Mr. Stark provided an overview of the areas being proposed for Phase I bond release and explained that the purpose of inspection was to ensure that the small linear pad areas tie into the surrounding natural terrain and that positive drainage off those areas was occurring. Mr. Stark further commented that topsoil and vegetation would also be examined for the presence of weeds even though they are generally associated with Phase II bond release. The reclaimed sites involved three (3) separate areas: Box Canyon Road; the E -1 pad sites; and the E -4 pad sites where MDW's were never drilled but disturbance occurred. We began the field potion of the inspection by walking up Box Canyon Road. The road was roughened with heavy slash and rip rap. The sides of the road tied nicely into the surrounding