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February 13, 2014 C- 1980- 007/West Elk Mine JRS <br />GENERAL MINE PLAN COMPLIANCE: <br />- West Elk is currently mining in longwall panel E4. They are at station 17 +60 at approximately cross -cut 12. <br />They have completed the longwall panel E5 headgate and were working on developing the longwall panel E6 <br />headgate (they are at station 39 +20 at cross -cut 22). They are also working on extending the E -Seam South <br />Mains. All of the mains were developed to cross -cut 79. The first three entries were extended to cross -cut 84. All <br />of the mining at the West Elk is progressing as permitted and shown on approved Map 51 - E -Seam Projected <br />Operations. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 Drainage Control; Surface <br />Stabilization; Placement: <br />- The RPEE was inactive at the time of the inspection. The haul road is closed due to snow just after the RPE. <br />The RPEE was viewed from old Colorado Highway 133 (across the North Fork of the Gunnison River). The <br />RPEE and rock buttress were covered with snow but appeared to remain stable. <br />- The RPE was wet and sloppy due to melting snow at the time of the inspection. The RPE was also inactive at the <br />time of the inspection. The RPE was well graded and appeared to be stable. The reclaimed slopes were all <br />covered with snow but appeared to be stable as well. There were no erosional problems noted on the RPE at the <br />time of the inspection. <br />SLIDES and DAMAGE - Rule 4.12: <br />- The HR -1 slide area was observed from above (on HR -1), below (from the RPE pond area) and from old <br />Colorado Highway 133 (across the North Fork of the Gunnison River). The slide area was covered with snow but <br />appeared to remain stable. There was no evidence of any movement and no erosional problems were noted. <br />- The ST -02 slide area was observed from below (pond MB -5E). The slide area was covered with snow but <br />appeared to remain stable. There was no evidence of any movement and no erosional problems were noted. <br />DOCUMENTS RECEIVED: None <br />This concludes the 13 February 2014 complete inspection report for the West Elk Mine. <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 3 of 5 <br />