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December 30, 2014 C- 1981 - 022 /Elk Creek Mine JRS <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA Not Applicable <br />N - Air Resource Protection R - Roads <br />N - Availability of Records N - 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 R - Support Facilities On -site <br />R - Hydrologic Balance N - Signs and Markers <br />R - Gen. Compliance With Mine Plan N - Support Facilities Not On -site <br />N - Other N - Special Categories Of Mining <br />N - Processing Waste N - Topsoil <br />COMMENTS <br />This was a partial inspection of the Elk Creek Mine conducted by Jim Stark of the Colorado Division of <br />Reclamation, Mining and Safety. There was no representative of Oxbow Mining, LLC present on the inspection. <br />I did contact Kameal Clark prior to the inspection and was told that there were only a few surface people on site. <br />The mine is currently not operational due to a fire in the gob behind the longwall in panel 18. The mine has been <br />sealed and there is no timeline for the resumption of mining operations. The weather was cold and overcast and <br />the ground was covered with several inches of snow at the lower elevations. The higher elevations were covered <br />with snow and ice and were basically inaccessible. <br />HYDROLOGIC BALANCE - Rule 4.05: Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6; Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring <br />4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments 4.05.6, <br />4.05.9; Stream Buffer Zones 4.05.18: <br />- Pond A was covered with several inches of snow but appeared to be basically dry at the time of the inspection. <br />The pond collects runoff from the wash down water from the loadout structure. With the mine not being <br />operational, there will be very little water in the pond. The pond is an incised pond. Given its proximity to State <br />Highway 133, the rail line and the loadout, there is very little vegetation, however, the pond appears to remain <br />stable. There were no erosional problems noted in or around the pond. <br />- Pond B contained water approximately 7 feet below the emergency spillway and was not discharging at the time <br />of the inspection. Discharge is accomplished by opening a gated valve that site below the water level. The pond <br />embankment was covered with snow but appeared to be stable, with no erosional problems noted. <br />- Pond C was dry at the time of the inspection. The embankment is a concrete wall, which remained stable at the <br />time of the inspection. <br />- Pond D contained water approximately five feet below the top of the discharge pipe and was not discharging at <br />the time of the inspection. The pond embankment was covered with snow but appeared to be stable. No erosional <br />problems were noted on the pond embankment or inslopes. <br />- The ditches along the mine entrance/haul road and the haul road to the Elk Creek Mine portals were all covered <br />with several inches of snow. The ditches appeared to be stable and no erosional problems were noted. <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 8 <br />