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July 24, 2014 C -1981- 018 /Deserado Mine ZTT <br />inspection. No stability issues were observed. <br />Red Wash Reservoir No. 3. <br />D -seam dewatering pond with cat tail establishment. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization; Placement: <br />Deserado was spreading and compacting refuse on pile RP -5A at the time of the inspection. The winter stockpile <br />has been completely spread throughout the pile. Both refuse pile RP -2/3/4 and RP -5A was stable with no issues <br />observed. Refuse placement and compaction were being done in a manner that allows surface runoff to be directed <br />to the perimeter ditches and into the associated sediment ponds. <br />Refuse pile RP -1 no longer is in use and has been reclaimed. The pile remains stable and well vegetated. No issues <br />were noted. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />Multiple reclaimed pads and roads were inspected along the county road to the Road Was Reservoir No. 3. These <br />reclaimed areas were related to facilities and roads were used during the mining within the B -seam. The reclaimed <br />areas were well vegetated. No erosional issues were observed. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 3 of 5 <br />