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June 25, 2013 C-1981-018/Deserado Mine <br />ZTT <br />Primary ditch to DP -1 Pumping at B -seam dewatering pump. <br />PROCESSING WASTE/COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization; Placement: <br />At the time of the inspection, refuse was not being actively piled, spread and compacted on Refuse Pile 5A. The <br />pile was well compacted and driving over was easily attained. The pile was graded to allow drainage to flow away <br />from the pile towards the perimeter ditches before reaching a sediment pond. As noted earlier, a gully has formed <br />along the eastern edge of RP -5A perimeter ditch. <br />ROADS — Rule 4.03 <br />Construction 4.03.1(3)/4.03.2(3) <br />Drainage 4.03.1(4)/4.03.2(4) <br />Surfacing and Maintenance4.03.1(5) and (6)/4.03.2(5) and (6) <br />Reclamation 4.03.1(7)/4.03.2(7): <br />All roads inspected were well graded with no signs of fugitive dust. <br />SIGNS AND MARKERS — Rule 4.02: <br />Mine Identification signs were found along intersections of County Road 65 and the permit boundary, County <br />Road 65 and the Deserado Mine entrance road, and County Road 65 and Highway 64. All signs were in <br />compliance with required information. <br />Topsoil markers were observed above every pile inspection and clearly designated each pile. <br />Number of Partial Inspection this Fiscal Year: 8 <br />Number of Complete Inspections this Fiscal Year: 4 <br />Page 4 of 6 <br />