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November 6, 2014 C- 1996 - 084 /Lorencito Canyon Mine LDS <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA Not Applicable <br />NA - Air Resource Protection Y - Roads <br />N - Availability of Records Y - Reclamation Success <br />NA - Backfill & Grading R - Revegetation <br />Y - Excess Spoil and Dev. Waste NA - Subsidence <br />NA - Explosives R - Slides and Other Damage <br />Y - Fish & Wildlife NA - Support Facilities On -site <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />N -Other <br />NA - Processing Waste <br />Y -Signs and Markers <br />Y - Support Facilities Not On -site <br />Y - Special Categories Of Mining <br />Y -Topsoil <br />COMMENTS <br />This was a partial inspection by Leigh Simmons of Colorado Division of Reclamation, Mining and Safety, <br />(the Division). The weather was fine and dry. One permitting action is in progress, it is detailed under the heading <br />GENERAL MINE PLAN COMPLIANCE. For a more complete description of the state of New Elk Coal <br />Company refer to the inspection report for the New Elk mine. <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 />All ponds were inspected. None of them were discharging and no problems were noted. <br />GENERAL MINE PLAN COMPLIANCE: <br />TR18 is in progress. <br />REVEGETATION — Rule 4.15 <br />Vegetative Cover; Timing: <br />Further work had been done with the hydroseeder, notably on the slopes above pond 6. <br />SLIDES and DAMAGE - Rule 4.12: <br />Repairs had been made to the erosion outside of the downdrain to fill 8. <br />The damaged downdrains on fills 7 and 9 had been repaired. Any comment as to the long term quality of <br />the repairs will have to wait on the next significant rain event. <br />DOCUMENTS RECEIVED <br />A copy of the proof of publication of the public notice for TR18 was hand delivered by John Ten y. <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 11 <br />