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May 19, 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 />R - Availability of Records <br />Y - Reclamation Success <br />NA - Backfill & Grading <br />R - 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 complete inspection by Leigh Simmons of Colorado Division for Reclamation, Mining and <br />Safety, (the Division). No represntative of New Elk Coal Company (NECC) accompanied the inspection. The <br />weather was generally showery but was clear and sunny while at the site. Heavy rain had occurred within the <br />preceding 24 hours. <br />RN6 is in progress and ready to be approved but for a problem brought to light during a check of the AVS <br />database which links Matt Goldfarb with three outstanding violations in West Virginia. <br />AVAILABILITY OF RECORDS — Rule 5.02.4(1): <br />The records were in good order in the surveying office at 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 />Erosion continues to be a problem at the northern edge of the site and the recent downpour made it very <br />obvious. This has been documented repeatedly since October 2012, but to summarize: A gully has formed in a <br />natural topographic depression within the permit area. Runoff contributing to the gully comes from two sources. <br />The minor source is from within the permit area, where water is funneled into the depression; the major source is <br />from the neighboring property where a ditch line conveying water from a long steep road has become <br />compromised over time and altered its course so that it spills to the south west onto the Golden Eagle permit area. <br />NECC has attempted to address the effects of the water using rows of bales, but no attempt has yet been made to <br />address the source of the water. The bales were full of sediment and no longer working as intended. More <br />important than cleaning out the bales is to prevent the water that should be conveyed along the neighbor's road <br />ditch from flowing onto the Golden Eagle property. <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 2 of 9 <br />