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January 23, 2015 C- 1981 - 013 /Golden Eagle 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 <br />Y - Roads <br />N - Availability of Records <br />N - Reclamation Success <br />NA - Backfill & Grading <br />N - Revegetation <br />NA - Excess Spoil and Dev. Waste <br />NA - Subsidence <br />NA - Explosives <br />NA - Slides and Other Damage <br />Y - Fish & Wildlife <br />NA - Support Facilities On -site <br />R -Hydrologic Balance <br />Y -Signs and Markers <br />R - Gen. Compliance With Mine Plan <br />Y - Support Facilities Not On -site <br />N -Other <br />NA - Special Categories Of Mining <br />NA - Processing Waste <br />NA -Topsoil <br />COMMENTS <br />This was a partial inspection by Leigh Simmons of Colorado Division of Reclamation, Mining and Safety, <br />(the Division). No representative of New Elk Coal Company (NECC) was present. The weather was clear and <br />cold, with several inches of snow on the ground. Permitting actions in progress are 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 />The bales were in place on the northern edge of the site. The snow provided an opportunity to view the <br />relief of the erosive area. It is clear that erosion on the Golden Eagle site is a result of water breaching a road ditch <br />on the neighboring property (owned by Peter & Jean Vallejo, according to map 1 of the PAP). It would be a <br />straightforward job to restore the ditch, convey the runoff down to the county road where it would pass through a <br />culvert under the cattle grid and disperse into a flat field. Unless this work is completed it will be very difficult for <br />NECC to control erosion at the Golden Eagle site. (On the photos, solid red arrows show the current direction of <br />surface water flow, and dashed arrows show where it should flow). <br />GENERAL MINE PLAN COMPLIANCE: <br />RN6 is 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 7 <br />