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December 3, 2015 C-1981-018/Deserado Mine CCW <br />Pond DP -1 was impounding water at the time of the inspection. Snow was covering the embankments and <br />the water in the pond was frozen over (Photo 3). The primary discharge point was clear of debris and the <br />emergency spillway was clear. The embankments showed no signs of instability. The outfall to Scullion Gulch <br />was in good condition. <br />Ponds PP -1 and PP -2 were frozen during the inspection. The embankments were stable, with no indications of <br />instability. <br />The Slot Storage Ponds, SS -1 and SS -2 were covered in snow during the inspection. The embankments were <br />stable and had no indications of instability. The railroad Ponds, RR -1 and RR -2 were also covered in snow. There <br />were no indications of instability in the pond embankments. <br />Refuse Pond RP -1, RP -2/3 (Large pond, west cell and southern cell), RP -4 and RP -5a were inspected. RP -1 was <br />snow covered, which made it difficult to determine if there was any water impounded in the pond. There were no <br />signs of instability in the embankments. The primary spillway and emergency spillway were clear of debris. Rp- <br />2/3, RP -4 and RP -5a were all impounding water at the time of the inspection; however, none of the ponds were <br />discharging. The spillways for these ponds were clear of debris and trash. The ponds were frozen over and the <br />embankments were covered in snow. The embankments of the ponds were stable with no signs of instability. <br />The B -Seam Dewatering Pond Pump was not operating at the time of the inspection. All cells of the dewatering <br />system were impounding and treating water. Last Chance pond was impounding water and mostly full but not <br />discharging (Photo 4). All of the ponds were frozen over and had snow covering the embankments. There were <br />no indications of instability. <br />The construction of the SDH -3 Dewatering System had been completed before the inspection. The dewatering <br />system is a series of three ponds designed to treat water that is being pumped out of the D -Seam mine workings. <br />Discharge from the pump was being directed into the upper pond during the inspection. The pond was not frozen <br />over and the embankment was covered in snow (Photo 5a). The pond was discharging into the riprap spillway to <br />the middle pond. The middle pond was beginning to impound water and not at capacity (Photo 5b). There was no <br />discharge from the middle pond to the lower pond. The embankment was covered in snow. The lower pond was <br />impounding water at the time of the inspection; however, the pond was not discharging to Red Wash. The <br />embankment was covered in snow. There were no signs of instability in any of the embankments in the <br />dewatering system. The pad for the dewatering pump was in good condition. <br />The Raw Water Lagoon was frozen over during the inspection. The pump was securely attached to the bridge. <br />There were no signs of instability. <br />GENERAL MINE PLAN COMPLIANCE: <br />During the inspection, the longwall was in the process of being moved from the 1"- 13 Panel to the new <br />panel, LWB-14. Maintenance work on the Longwall miner was occurring. <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 3 of 10 <br />