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September 3, 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 N - Roads <br />N - Availability of Records R - Reclamation Success <br />N - Backfill & Grading N - Revegetation <br />N - Excess Spoil and Dev. Waste N - Subsidence <br />N - Explosives N - Slides and Other Damage <br />N - Fish & Wildlife N - Support Facilities On -site <br />R - Hydrologic Balance R - Signs and Markers <br />N - Gen. Compliance With Mine Plan N - Support Facilities Not On -site <br />N - Other N - Special Categories Of Mining <br />N - Processing Waste R - Topsoil <br />COMMENTS <br />This was a complete 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 18. <br />The coal in the concrete storage silo developed hot spots and smoke was seen at the top of the silo. Coal was <br />manually being removed from the silo with front end loaders and being hauled back to the main coal pile by a <br />dump truck. The conveyor belt and structure that was damaged in the August fire has been removed and was <br />staged in the employee parking area (photo 1). <br />AIR RESOURCE PROTECTION — Rule 4.17: <br />The coal stockpile was very small. Coal from the silo was being stacked on the pile by a dump truck. The <br />coal conveyor system was not in operation. There were no signs of fugitive dust on site or off. The roads around <br />the facilities area were being watered for dust control. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />All files were available for review at the OMLLC office. See attached availability of records checklist. <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 />Pond E and East Yard ponds were dry. Ponds A, B and D all contained water but were not discharging. <br />The outlet channel of Pond B was free and clear of obstructions and debris. <br />The sediment sumps along the Elk Creek main haul road were clean and in good condition. The clean water <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 7 <br />