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June 4, 2014 C- 1981 - 035 /King Coal Mine MLT <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />Y - Air Resource Protection <br />R - Availability of Records <br />Y - Backfill & Grading <br />R - Excess Spoil and Dev. Waste <br />NA - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />NA -Other <br />R - Processing Waste <br />R - Roads <br />Y - Reclamation Success <br />R - Revegetation <br />Y - Subsidence <br />Y - Slides and Other Damage <br />R - Support Facilities On -site <br />Y - Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />R - Topsoil <br />COMMENTS <br />This was a complete inspection of the King Coal Mine conducted by Marcia Talvitie and Brock <br />Bowles of the CDRMS on the afternoon of Wednesday, June 4, 2014. Skies were clear and <br />temperatures were warm. Wade Wymore, the mine's Surface Supervisor, accompanied us <br />throughout the inspection of both the King I and King 11 facility areas. <br />PERMITTING UPDATE: <br />MR -38 Identification of Interests - the Division Approved and Issued this revision on June 3, <br />2014 <br />TR -22 Exploration Drill Holes (9) - the Division issued a Preliminary Adequacy Review on June <br />18, 2014. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3) / 4.03.2(3); Drainage 4.03.1(4) / 4.03.2(4); Surfacing and Maintenance <br />4.03.1(5) and (6) / 4.03.2(5) and (6); Reclamation 4.03.1(7)/4.03.2(7): <br />At King I, the main road leading into the facilities area was dry and in good condition. The <br />road leading to the top of the refuse pile was also in good condition, and runoff was being <br />controlled. <br />• The main haul road at King II was dry and graded, as was the access road to the portal bench. <br />SUPPORT FACILITIES - Rule 4.04: <br />The coal stockpiles at Stack Tube #1 (Photo 1) and Stack Tube #2 (Photo 2) have grown <br />significantly, and expansion beyond the developed pad areas appeared to be imminent. The <br />mine was preparing to do an underground section move the following week, so the stockpiles <br />had been expanded in preparation for the move. Steps must be taken to ensure that the #2 <br />stockpile not be allowed to encroach upon undisturbed surface or into the East Clear Water <br />diversion ditch. <br />Three separate products were stockpiled: 3 "- minus, which is the mine's major product; lump <br />coal which is used by the Durango- Silverton Narrow Gauge train and for home heating; and <br />3/4" stoker coal. <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 4 Page 2 of 10 <br />