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May 14, 2014 C -1981- 018 /Deserado Mine RDZ <br />Rundowns above the portal area were observed from below, and no problems were seen. <br />The dewatering system above the Last Chance Pond was inspected. Water has been flowing from the mine <br />workings to the system since the day before the inspection (per Scott Wanstedt). This water has made it to the <br />first wetland. This system seems to be in working order. <br />GENERAL MINE PLAN COMPLIANCE: <br />The Deserado Coal Mine was generally found to be in compliance with the mine plan. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization; Placement: <br />The refuse pile area south of Pond RP -2/3 was inspected. Several rills but no large gullies were seen <br />during the inspection. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.03.2(3) <br />Drainage 4.03.1(4)/4.03.2(4) <br />Surfacing and Maintenance4.03.1(5) and (6)/4.03.2(5) and (6) <br />Reclamation 4.03.1(7)/4.03.2(7): <br />Haul roads were in good shape, and roadside ditches appeared to be clear. <br />REVEGETATION — Rule 4.15 <br />Vegetative Cover; Timing: <br />Significant cheat grass was observed on the dams of RP -1, RP -2/3, Last Chance, SS -2, and RR -1. <br />SUPPORT FACILITIES - Rule 4.04: <br />The Rock Dust 44 Silo is a new facility that was inspected in April 2014. The rock check has not yet been <br />built. The site has been seeded and more gravel will be added to the site per Scott Wanstedt. There is no <br />evidence in the nearby undisturbed area that significant sediment has been transported from this silo area by <br />runoff. <br />The south side of the Loadout was inspected. No erosion or other problems were seen. <br />At the B Vent Shaft 43, there is no evidence in the nearby undisturbed area that significant sediment has been <br />transported from this pad by runoff. The area is flat, has a roughened surface, and is protected by gravel. <br />SIGNS AND MARKERS — Rule 4.02: <br />At the Rock Dust 44 Silo the topsoil stockpile is lacking a sign. <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 3 of 6 <br />