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January 8, 2014 C- 1981- 012/New Elk Mine <br />LDS <br />There has been some discussion over recent months about upgrading the RDA access road to a haul road. <br />It was not clear at the time of the inspection what the state of this project was. <br />SIGNS AND MARKERS — Rule 4.02: <br />Mine ID signs were in compliance, with the exception of the sign on the second Apache Canyon airshaft. <br />Stream buffer zone markers were in compliance. <br />OFFSITE SUPPORT FACILIITES - Rule 4.04,4.28: <br />The Jansen loadout was inspected. Vegetation and spilled coal had been cleared. The gate had been <br />repaired and access was secure. <br />The Apache Canyon airshafts were inspected. Both sites were in good condition. The sign on the second <br />airshaft (the one with the chain -link fence) still needs to be replaced. <br />The monitoring wells in Rancho Escondido and the Bosque del Oso wildlife area were inspected. No <br />problems were observed <br />TOPSOIL — Rule 4.06 <br />Removal 4.06.2; Substitute Materials 4.06.4(4); Storage and Protection 4.06.3; Redistribution 4.06.4: <br />All topsoil stock -piles were marked with signposts. <br />The soil storage area was in good order, with the different piles distinct from each other. Ditch cleanings <br />had been moved onto the temporary development waste storage pile. <br />DOCUMENTS RECEIVED <br />N/A <br />OTHER (SPECIFY) <br />N/A <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 7 of 16 <br />