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July 9, 2014 C- 1980- 007/West Elk Mine 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 />N - Roads <br />N - Availability of Records <br />R - Reclamation Success <br />R - Backfill & Grading <br />R - 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 />N - Support Facilities On -site <br />R - Hydrologic Balance <br />N - Signs and Markers <br />N - 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 West Elk Mine conducted by Jim Stark of the Colorado Division of <br />Reclamation, Mining and Safety. Howard Strand, representing the Office of Surface Mining (OSM); Jessica <br />Loveland, representing Mountain Coal, LLC (MCC); and Dan Gray, Representing the US Forest Service (USFS) <br />accompanied me on the field portion of the inspection on 9 July 2014. Kathy Welt, representing MCC, was <br />present for the office portion of the inspection. Only Jessica Loveland accompanied me on the field portion of <br />inspection on 10 July 2014. The inspection on 9 July 2014 was a Partial Phase I Bond Release Inspection in <br />response to the SL -07 application. The inspection on 10 July 2014 focused on the reclaimed MDW pads and roads <br />in Box Canyon. These pads and roads were released with the approval of SL -05, approved on 11 February 2014. <br />The weather was hot and sunny and the ground was dry. <br />As stated above, the inspection was in response to an application for a Partial Phase I Bond Release application, <br />SL -07, submitted by MCC. The application was submitted on 1 May 2014, deemed incomplete on 9 May 2014 <br />and deemed complete on 9 June 2014. The application requests the release of approximately 19.23 acres of <br />surface that was reclaimed in 2011 and 2013. The bond release application includes exploration holes (drilled <br />under the permit and not an NOI), MDW wells, drill pads and their associated light -use roads within the West <br />Flatiron and Dry Fork of the Minnesota Creek areas. The application also includes the Monument Dam borrow <br />area. All of these sites are located on US Forest Service lands. MCC has requested approximately $98,000.00 for <br />release. This final amount will be determined based on the Division's findings on this inspection and during a <br />detailed office review of the application materials. This will be completed prior to proposing a decision. <br />The inspection began at the mine office, with all of the above named parties present. There was a short meeting <br />(approximately 30 minutes) held in the conference room. The purpose of this meeting was to discuss the criteria <br />for a Phase I Bond Release and the criteria that would be observed at the West Elk Mine in particular. Phase I <br />Bond Release criteria include the successful backfilling and rough grading of disturbed areas to the approved <br />approximate original contuor (AOC) and the successful reestablishment of surface water draianage. I then <br />proceeded to discuss the Bond Release process following the inspection. Finally, we discussed a plan for <br />completing the field portion of the inspection. Following the Division's documentation of the observations in the <br />Number of Partial Inspection this Fiscal Year: I <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 54 <br />