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July 28, 2015 C-1981-012/New Elk Mine LDS <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 />N - Availability of Records <br />Y - Backfill & Grading <br />R - Excess Spoil and Dev. Waste <br />NA - Explosives <br />Y - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />N -Other <br />R - Processing Waste <br />R - Roads <br />Y - Reclamation Success <br />R - Revegetation <br />NA - Subsidence <br />Y - Slides and Other Damage <br />Y - Support Facilities On-site <br />Y - Signs and Markers <br />N - Support Facilities Not On-site <br />Y - Special Categories Of Mining <br />Y - Topsoil <br />COMMENTS <br />This was a partial inspection by Leigh Simmons of the Colorado Division for Reclamation, Mining and <br />Safety, (Division). The inspection was accompanied by Vince Massarotti of New Elk Coal Company, (NECC). <br />The weather was fine and dry during the inspection, although the summer had been unusually wet prior to the <br />inspection. <br />Permit Renewal 6 and Minor Revision 123 are in progress, more details are given under the heading <br />GENERAL MINE PLAN COMPLIANCE. <br />The status of the New Elk Mine is Active, but there is no immediate prospect of the mine returning to <br />production. The Cline Mining bankruptcy proceedings are ongoing. <br />Negotiations with Colorado Parks and Wildlife concerning public access across the railroad easement east of the <br />mine permit boundary are ongoing. <br />Recent activity had been focussed on moving material from the second temporary development waste pile <br />to the RDA, as well as regular maintenance work. <br />Another round of layoffs took place in June. Among those who were let go was John Terry. Ron Thompson <br />continues to work for NECC as a contractor. He and Louis Head will be primary contacts for permitting. Vince <br />Massarotti will also be included in correspondence relating to inspections. <br />EXCESS SPOIL and DEVELOPMENT WASTE — Rule 4.09 <br />Placement; Drainage Control; Surface Stabilization: <br />Two haul trucks and a water truck were operating to transport development waste from the second <br />temporary development waste pile to the RDA, a 35 ton Komatsu and a 30 ton Volvo. A second Komatsu was <br />waiting on a part from the manufacturer, but will be put use shortly. Each truck takes 2540 loads per day. Jeff <br />Johnson was loading the trucks in the facilities area. On the RDA Ron Tokar was spreading and compacting the <br />material using a dozer pulling a sheep's foot compacter. A second dozer was standing by on the RDA to minimize <br />the downtime during re -fueling. The drainage channel on the RDA had been pinched right back against the toe of <br />the slope and the team were working to fill low spots. The material was of a good consistency to work with. The <br />sheep's foot compacter didn't appear to sink completely in to the material, suggesting that compaction was pretty <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 11 <br />