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February 17, 2015 C -1981- 022 /Elk Creek Mine MLT <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 />R - Availability of Records <br />Y - Backfrll & Grading <br />Y - Excess Spoil and Dev. Waste <br />R - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />Y - Gen. Compliance With Mine Plan <br />N - Other <br />R - Processing Waste <br />Y - Roads <br />Y - Reclamation Success <br />Y - Revegetation <br />Y - Subsidence <br />Y - Slides and Other Damage <br />R - Support Facilities On -site <br />R - Signs and Markers <br />NA - Support Facilities Not On -site <br />NA - Special Categories Of Mining <br />Y -Topsoil <br />COMMENTS <br />A complete inspection of the Elk Creek Mine was conducted by Marcia Talvitie of the DRMS on <br />Tuesday and Wednesday, February 17 -18, 2015. Jim Kiger was in Denver attending the SME / <br />CMA conference, so Ben Godwin, Mine Engineer, accompanied me on the inspection. Records <br />were inspected on the 17th, and the field portion of the inspection took place on the morning of <br />the 18th. Skies were clear and temperatures were unseasonably mild. <br />SIGNS AND MARKERS Rule 4.02: <br />• Mine Identification signs and surface disturbance markers were installed as required <br />throughout the surface facilities area. <br />• Topsoil stockpiles were marked with identifying signs. <br />SUPPORT FACILITIES - Rule 4.04: <br />The company had completed its contract to sell coal to the Bowie No. 2 Mine, and coal was <br />currently being hauled to the West Elk Mine. Only IOk to 12k tons remained at the stack <br />tube area south of Pond D (Photo 1). Mr. Godwin indicated the haul would probably be <br />completed by the end of the month. <br />• The mine fan has been shut down since December 2014. <br />• Vessels' methane- burning / power generating infrastructure was in operation at the upper end <br />of the Elk Creek facilities. Structures have been placed at the former Sanborn Creek portals <br />to capture gas from the workings of that mien. <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 <br />4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water Monitoring 4.05.13; <br />Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; Impoundments <br />4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />• Ground conditions were dry, overall, and there was no snow on the ground within the surface <br />facilities. Surprisingly, very little snow was present even on the north- facing slopes located <br />across the river from the Elk Creek Mine. <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 3 Page 2 of 7 <br />