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January 22, 2015 C- 1981 - 022 /Elk Creek Mine TNL <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 N - 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 Y - Support Facilities On -site <br />R - Hydrologic Balance R - 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 />R - Processing Waste Y - Topsoil <br />COMMENTS <br />This was a partial inspection conducted on 22 January, 2015 by Tabetha Lynch and Jim Stark of the Colorado <br />Division of Reclamation, Mining and Safety. Mr. James Kiger was present as a representative of Oxbow Mining, <br />LLC. The Elk Creek Mine is currently not operating and temporarily sealed due to a combustion event behind the <br />longwall in panel 18. No timeline has been established to resume mining. At the time of inspection a temporary <br />scale was set up and trucks going to the West Elk Mine were being loaded with stockpiled coal. It was estimated <br />that the remaining stockpile was less than 20,000 tons. <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 />• Pond A had some snow but was mainly dry. No instabilities were noted. <br />• Pond B was frozen at the time of inspection, no discharge was noted. The pond embankments appeared <br />stable. <br />• Pond C was dry with some snow present next to the concrete embankment. The embankment appeared to <br />be stable. No erosional problems were noted on the adjacent slopes. (See photo: Pond C). <br />• Pond E was dry with snow next to the Cement embankment. The embankment appeared stable. (See <br />phone: Pond E). <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization; Placement: <br />The West Refuse facility appeared stable. No slumps or erosional problems were noted. (See photo: <br />Refuse Facility) <br />Number of Partial Inspection this Fiscal Year: 6 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 4 <br />