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July 23, 2014 C- 1981- 012/New Elk Mine JLE <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 />N - Availability of Records <br />N - Backfill & Grading <br />R - Excess Spoil and Dev. Waste <br />N - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />NA -Other <br />N - Processing Waste <br />R - Roads <br />N - Reclamation Success <br />R - Revegetation <br />N - Subsidence <br />Y - Slides and Other Damage <br />R - Support Facilities On -site <br />N - 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 partial inspection of the New Elk Mine; C- 1981 -012; Operated by New Elk Coal Company, LLC. I, <br />Jared Ebert of the Colorado Division of Reclamation, Mining and Safety conducted the inspection. Mr. John <br />Terry with New Elk Coal Company accompanied me on the inspection. The weather was clear and sunny. <br />EXCESS SPOIL and DEVELOPMENT WASTE — Rule 4.09 <br />Placement; Drainage Control; Surface Stabilization: <br />The Development Waste Disposal Area No. 2 was observed. This pile appeared stable with the exception of small <br />rills observed on the slopes of the pile. The drainage berm surrounding the pile was maintained and appeared <br />functional. A small pool of water was impounded at the east end of the pile. The water was not deep enough to <br />discharge through the culvert C -13. <br />The Development Coal Waste Pile was stable and vegetated. <br />The Refuse Disposal Area was observed. The face of the fill area was vegetated and appeared stable. The east <br />and west side ditches appeared stable and functional. The northern diversion ditch above the refuse area was <br />walked. This ditch was clear and functional. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />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; <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 />Pond 006A was holding a small amount of water. Wetland vegetation has established in several areas within the <br />pond. The operator was not pumping water into the pond, and the pond was not discharging. <br />Pond 007 was holding water but was not discharging. The water was very murky, according to Mr. Terry the <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 13 <br />