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July 10, 2014 C- 1983 - 059 /Terror Creek Loadout JRS <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />R - Roads <br />N - Availability of Records <br />N - Reclamation Success <br />N - Backfill & Grading <br />N - 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 />R - Support Facilities On -site <br />R - Hydrologic Balance <br />N - Signs and Markers <br />R - 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 Terror Creek Loadout conducted by Jim Stark of the Colorado Division of <br />Reclamation, Mining and Safety. There was no representative of Terror Creek, LLC present on the inspection. <br />The Terror Creek Loadout is now only operational on an as needed basis. With the Elk Creek Mine not <br />operational (the loadout receives its coal from Elk Creek) this will further limit the operations at the Terror Creek <br />Loadout. The weather was hot and sunny and the ground was dry. <br />HYDROLOGIC BALANCE - Rule 4.05; Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />- There was a small pool of water in the sediment pond at the time of the inspection. The level was well below the <br />primary spillway and was not discharging. The pond embankment was well vegetated and appeared to be stable. <br />There were no erosional problems noted on the pond embankment. <br />- The dugout pond was dry at the time of the inspection. The pond is an incised pond. The inslopes and <br />surrounding areas were well vegetated and stable. There were no erosional problems noted on or around the <br />dugout pond. <br />- The roadside ditch (along the haul road) and the ditch on the north side of the coal stockpile area were both dry at <br />the time of the inspection. The inslopes of the ditches appeared to be well vegetated and stable and there were no <br />erosional problems noted in any of the ditches. <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. There was a <br />small pile of stoker coal and both the lump coal and coal fines piles were gone at the time of the inspection. <br />There were no problems noted with the coal processing and loading operations at the Terror Creek Loadout and <br />the current operations are consistent with what is approved in the permit. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 6 <br />