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COLORADO <br />* Division of Reclamation, <br />Mining and Safety <br />Uepartment of Natural ReSOUTCeS <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Mr. Roy Karo <br />Seneca 11 West Mine <br />Seneca Coal Company LLC <br />P.O. Box 670 <br />Hayden, CO 81639 <br />June 13, 2014 <br />RE: Seneca II -W Mine; Seneca Coal Company <br />1st Quarter 2014 Stockpond Inspection Report <br />Permit C- 1982 -057 <br />Dear Mr. Karo, <br />The Colorado Division of Reclamation, Mining and Safety ( CDRMS) received Seneca Coal Company's <br />fourth quarter 2013 stockpond inspection reports on April 2, 2014. The Division finds the above <br />reference report to be in compliance with the following CDRMS regulation. <br />4.05.9(17) — Examined at least quarterly by a qualified person designated by the operator, for <br />appearance of structural weakness and other hazardous conditions. <br />4.05.9(17) — A copy of the report shall be submitted to the Division on a quarterly basis. <br />The following stock tanks were inspected on the respective dates: <br />T -1 (rock check dam remains), 3/24/2014 <br />T -2, 3/24/2014, no problems -snow covered and frozen <br />T -3, 3/24/2014, no problems -snow covered and frozen <br />T -5, 3/24/2014, no problems -dry <br />T -18, 3/24/2014, no problems - slight trickle flow <br />T -20, 3/24/2014, no problems <br />T -22, 3/24/2014, completely full of sediment, acting as a check dam. <br />T -24, 3/24/2014, no problems <br />T -26, 3/24/2014, snow covered, inaccessible <br />T -27, 3/24/2014, snow covered, inaccessible. <br />Based on the report, is appears that the impoundments inspected were functioning as designed at the time <br />of the inspection, with the exception of T -22. T -22 no longer functions as a stock tank, but functions as a <br />check dam to slow the flow in the drainage. <br />Sincerely, <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http: / /mining.state.co.us <br />John W. Hickentooper, Governor I Mike King, Executive Director I Virginia Brannon, Director <br />o_ Cola <br />1976 4L <br />