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May 27, 2014 C- 1981- 012/New Elk Mine <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />R - Air Resource Protection <br />N - Roads <br />N - Availability of Records <br />N - Reclamation Success <br />N - Backfill & Grading <br />R - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />N - Explosives <br />N - Slides and Other Damage <br />N - Fish & Wildlife <br />N - Support Facilities On -site <br />R - Hydrologic Balance <br />R - Signs and Markers <br />N - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On -site <br />N - Other <br />N - Special Categories Of Mining <br />N - Processing Waste <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection of the New Elk Mine conducted by Brock Bowles of the Colorado Division of <br />Reclamation, Mining and Safety. Vince Massarotti of the New Elk Coal Company was present for the inspection. <br />The weather was partly cloudy and warm. A light breeze was blowing down the canyon. The gound conditions <br />were dry. <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />Coal was being mined to fulfill a small local contract. The coal was being stacked on the raw coal pile <br />and was not being cleaned. Coal was not being loaded or hauled off site at the time of the inspection. The coal <br />will not be cleaned for this contract and the buyer is supplying the trucks for transport. There were no signs of <br />fugitive dust from the coal stockpile or conveyor belt system. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; <br />Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; <br />Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />The clean water ditch D-314131313, below culvert C -2, was re- directed to the west into the wetland area <br />(photo 1). This change in ditch direction matches the direction indicated on Map 13 -Sheet 1. At the slurry <br />injection site at the west end of the disturbed area, the clean water ditch was complete diverting water around the <br />pad area. <br />The containment ditch on the south side of the Development Waste Disposal Area has been repaired and slopes <br />toward culvert C -13 (photo 2). A small amount of water is standing in front of C -13 and is reported as being about <br />6 inches deep (photo 3). The emergency spillway for Pond 004A was free and clear of obstructions (photo 4). <br />The SAE bales at the water tanks were in place and functional. The drop inlet 2 under the raw coal conveyor was <br />free and clear of obstructions (photo 5). <br />Pond 007A contained water. Water was not discharging from pond 007A (photo 6) and the operator is waiting for <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 2 of 6 <br />