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February 13, 2014 C- 1983 - 059 /Terror Creek Loadout JRS <br />GENERAL MINE PLAN COMPLIANCE: <br />- The Terror Creek Loadout is a loadout only. Operations at the site include processing coal (sizing coal) and <br />loading trains. The site was not operating at the time of the inspection and is only operational when an order for <br />coal is received. The operations are also affected by the current shut down at the Elk Creek Mine. The lump coal <br />pile was basically gone but there was a medium -sized pile of stoker coal and a large coal fines pile at the time of <br />the inspection. There were no problems noted with the coal processing operations and they are consistent with <br />what is approved in the permit. <br />ROADS — Rule 4.03 Construction 4.03.1(3)/4.03.2(3) Drainage 4.03.1(4)/4.03.2(4) Surfacing and <br />Maintenance4.03.1(5) and (6)/4.03.2(5) and (6) Reclamation 4.03.1(7)/4.03.2(7): <br />- The haul road from the loadout entrance to the truck scale is a paved road. This road was well maintained and <br />stable. There were no problems noted with the road or the road embankments. The remaining haul road, from the <br />scale to the truck dump and back to the paved portion of the road, is a dirt road. This road was covered with snow <br />but remains stable and well maintained. No problems were noted with the dirt portion of the haul road at the time <br />of the inspection. <br />DOCUMENTS RECEIVED: Letter from Mike Dawson to Allan Hassler (also received via e- mail). <br />This concludes the 13 February 2014 complete inspection report for the Terror Creek Loadout. <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 3 of 5 <br />