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August 12, 2014 C- 1981 - 022 /Elk Creek Mine BFB <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />R - Air Resource Protection <br />N - Roads <br />N - Availability of Records <br />R - 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 />N - Support Facilities On -site <br />R - Hydrologic Balance <br />R - Signs and Markers <br />N - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On -site <br />R - Other <br />N - Special Categories Of Mining <br />N - Processing Waste <br />R - Topsoil <br />COMMENTS <br />This was a partial inspection of the Elk Creek Mine conducted by Brock Bowles of the Colorado Division of <br />Reclamation Mining and Safety. Jim Kiger of Oxbow Mining, LLC was present for the inspection. The weather <br />was mostly sunny with increasing clouds and rain showers in the afternoon. Elk Creek is not producing coal at this <br />time and continues to work with a reduced staff. The focus of this inspection were the gob vent boreholes <br />associated with Panel 19. <br />At some time after 12 am Aug 12, 2014, the conveyor belt line from the concrete silo to the train loadout caught <br />on fire. When I arrived at the mine at 8:30 am, the emergency crews had already departed and MSHA was just <br />getting to the scene. The investigation was just getting started. The cause of the fire and extent of the damage was <br />still unknown. The conveyor belt infrastructure had extensive damage (photo 1). <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />The coal stockpile was very small. Coal was not being stacked nor were bulldozers working on the pile. <br />There were no signs of fugitive dust on site of off. <br />HYDROLOGIC BALANCE - Rule 4.05 <br />Drainage Control 4.05.1, 4.05.2, 4.05.3; 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 />In the previous inspection report (July 29,2014), it was noted that erosion control devices need to be <br />installed on the road to HGBMP and Pad 16 -01. Both of these areas were re- inspected. No sediment control <br />devices were installed on the HGBMP road. Two rows of straw wattles were installed incorrectly on Pad 16 -01. <br />The wattles were installed uphill of the sediment deposition area. They need to be moved below the sediment <br />deposition area in order to control all sediment movement. <br />The gob vent boreholes for Panel 19 were inspected for drainage control and siltation structures. Gob vent <br />boreholes are constructed according to the `typical' gob vent borehole drill pad SAE design outlined in Exhibit <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 7 <br />