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September 16, 2014 C -1980- 004 /McClane Canyon Mine ZTT <br />Water storage tank. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization; Placement: <br />Coal fines were found throughout the mine site. It appears that the flooding has moved coal particles from the coal <br />storage area. Coal fines need to be picked up and placed in a designated coal stockpile. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.03.2(3) <br />Drainage 4.03.1(4)/4.03.2(4) <br />Surfacing and Maintenance4.03.1(5) and (6)/4.03.2(5) and (6) <br />Reclamation 4.03.1(7)/4.03.2(7): <br />The haul road from the site entrance to the portals was stable. Erosion and cutting occurred just below coal stock <br />pile along the road. Fill has been temporarily added to some of the cutting to allow access to equipment on the <br />equipment lay -down area near the portal. This area will need the gullies to be filled and regraded and ditches <br />reestablished. <br />Sections of the haul road berm were blown out as a result of the amount of surface runoff experienced. Berms <br />were already reestablished before the inspection occurred. Parts of the berms need additional fill in certain sections <br />and proper compaction to prevent sloughing and future erosion. <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 5 of 9 <br />