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September 17, 2015 C-1981-018/Deserado Mine CCW <br />are designed to collect the runoff from the Slot Storage. The ponds are stable and well vegetated. The ponds were <br />not holding water during the time of the inspection. <br />Ponds RP -1 (Photo 2), RP -2/3 (west cell and the large cell), RP -4, and RP -5A were observed to be dry during the <br />inspection. The East upper cell of RP -2/3 contained a small amount of water. The ponds are designed to collect <br />runoff from the refuse piles. There were no issues with the ponds. <br />Water was being pumped into the Raw Water Lagoon at the time of the inspection. The pump was securely <br />attached to the bridge. The Lagoon was well vegetated and stable. (Photo 3) <br />GENERAL MINE PLAN COMPLIANCE: <br />At the time of the inspection Longwall panel B-13, cross -cut 10, at approximately I IL was being actively mined. <br />This area is within the approved mine plan, <br />PROCESSING WASTE/COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization; Placement: <br />Refuse piles RP -2/3/4 and RP -5A (Photo 4) are compacted and graded to allow runoff to be directed to perimeter <br />ditches. The runoff then flows from the perimeter ditches into associated sediment ponds. The piles were stable, <br />no slumping or sloughing was observed at the time of the inspection. <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 />County Road 65 and the main haul road were in good condition during the inspection. The haul road was well <br />maintained with no ruts or areas of erosion. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />RP -1 was well vegetated and no rills or gullies were present at the time of the inspection. There were no issues. <br />Wildlife rock pile shelters have been placed on the top of RP -1. No Wildlife was seen during the inspection of <br />RP -1; however, animal trails can bee see in the surrounding area to the rock pile structures. (Photo 5) <br />At the time of the inspection the reclaimed East Portals Area and associated access road are well vegetated and <br />stable. There were no rills or gullies and the ditches were functioning as designed. <br />SUPPORT FACILITIES - Rule 4.04: <br />The second nitrogen plant is well maintained. The pad for the plant is graveled and stable. The road leading into <br />and out of the nitrogen plant pad is well maintained. No issues were identified. (Photo 6) <br />At the time of the inspection drilling of the RS -12L shaft was occurring (Photo 7). The drill pad was constructed <br />with berms to prevent off site impacts to the surrounding area. The road leading into and out of the RS -12L shaft <br />pad was muddy in low spots, creating ruts with a small amount of standing water. <br />Number of Partial Inspection this Fiscal Year: 2 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 3 of 10 <br />