2014-07-24_INSPECTION - C1980007 (2)

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June 24, 2014 C- 1980- 007/West Elk Mine JRS reports meet the applicable Phase III Bond Release criteria, the Division will draft a Findings of Compliance and Proposed Decision document for SL -06 and propose a decision to "approve" the bond release. If there are any deficiencies the Division can partially approve SL -06 Areas can be carved out, if necessary). Based on the observations in the field, however, the entire area appears to be eligible for a Phase III Bond Release. BACKFILL and GRADING — Rule 4.14 Contemporaneous Reclamation 4.14.1; Approximate Original Contour 4.14.2; Highwall Elimination 4.14.1(2)(f) ; Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials 4.14.3; Stabilization of Rills and Gullies 4.14.6: - Although not a Phase III Bond Release criteria, the Division still observed the backfilling and grading of the requested sites to ascertain the prospect for long -term stability. For specifics on the approximate original contour and other Phase I Bond Release criteria, please see the SL -01, SL -02 and /or SL -03 bond release inspection reports, as necessary. - The main thermal event area is a large area that encompasses approximately 14 acres. It had three bench areas that were used to drill numerous boreholes. All of the main thermal event areas remained stable at the time of the inspection. There were no signs of any settling, slumping or cracking. There are also four smaller pads used for drill holes, including TE Hole B (0.5 acres), TE Hole D (0.5 acres), TE Hole 1(0.3 acres) and TE Hole G (0.5 acres). All of these pad areas remained stable, with no signs of settling, slumping or cracking at the time of the inspection. The Division believes that all of the thermal event area disturbances listed in SL -06 will remain stable over the long -term. - The Lone Pine waste development area is approximately 1.0 acre. The area remains stable and there were no signs of any settling, slumping or cracking. The Power line corridor is approximately 2.0 acres. The area remains stable and there were no signs of any settling, slumping or cracking. The borrow area is approximately 0.5 acres. The area remains stable and there were no signs of any settling, slumping or cracking. The portal and fan bench area is approximate 2.0 acres. It was stable with no signs of any settling, slumping or cracking. The Division believes that all of the Lone Pine facilities area disturbances listed in SL -06 will remain stable over the long -term. - MDW pads 14 -06, 14 -07 and 14 -08 were all stable at the time of the inspection. There were no signs of any settling, slumping or cracking on any of the pads. The road spur from pad 15 -07 to pad 14 -09 was also stable, with no signs of any settling, slumping or cracking at the time of the inspection. The Division believes that all of the MDW pad and road disturbances listed in SL -06 will remain stable over the long -term. HYDROLOGIC BALANCE - Rule 4.05 Drainage Control 4.05.1, 4.05.2, 4.053; Siltation Structures 4.05.5, 4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4, Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: - Although not a Phase III Bond Release criteria, the Division still observed the drainage control of the requested sites to ascertain the prospect for long -term stability. For specifics on the drainage control and other Phase I Bond Release criteria, please see the SL -01, SL -02 and /or SL -03 bond release inspection reports, as necessary. - The main thermal event area maintained positive drainage. There were no signs of any erosional features at the time of the inspection. The four smaller drill hole pads also had positive drainage, with no erosional problems noted at the time of the inspection. The Division believes that all of the thermal event area disturbances listed in SL -06 will remain stable over the long -term. - The Lone Pine facilities areas all maintained positive drainage. There were no signs of erosion noted on any of Number of Partial Inspection this Fiscal Year: 11 Number of Complete Inspections this Fiscal Year: 4 Page 3 of 30