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January 23, 2015 C- 1981- 012/New Elk Mine LDS <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA Not Applicable <br />Y - Air Resource Protection <br />N - Roads <br />R - Availability of Records <br />N - 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 />Y - Support Facilities On -site <br />N - Hydrologic Balance <br />N - Signs and Markers <br />R - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On -site <br />NA -Other <br />N - Special Categories Of Mining <br />N - Processing Waste <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection by Leigh Simmons of Colorado Division for Reclamation, Mining and <br />Safety, (the Division). The inspection was accompanied by Vince Massarotti of New Elk Coal Company, (NECC). <br />The weather was clear and cold, with several inches of snow on the ground. Several permitting actions are in <br />progress, these are detailed under the heading GENERAL MINE PLAN COMPLIANCE. <br />The status of the New Elk Mine is Active, though will likely be changed to Temporary Cessation soon. <br />Since the last inspection the focus of all employess had been on completing the work to abate the MSHA <br />citation (7290086). The West Fan and Apache Canyon vent shafts, and the rope portal had been completely sealed; <br />the beltline portal was almost completely sealed (but had intentionally left incomplete to prevent the formation of <br />a vacuum); and the forms and steelwork had been prepared over the East Fan vent shaft, ready for concrete to be <br />poured on January 28. <br />The Cline Mining bankruptcy proceedings were progressing as expected. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />Records were not inspected. The records will be inspected in February or March. Prior to the next <br />complete inspection TR68 is likely to be approved, which will revise the permit text substantially. NECC will <br />need to update the paper copy of the Permit Application Packet in accordance with TR68. <br />GENERAL MINE PLAN COMPLIANCE: <br />TR68, TR70 and RN6 are all in progress. <br />DOCUMENTS RECEIVED <br />N/A <br />OTHER (SPECIFY) <br />N/A <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 10 <br />