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January 12, 2016 C-1981-018/Deserado Mine CCW <br />was captured in the second cell. The small breach was determined not to affect the functionality of the dewatering <br />system. Maintenance is planned to repair the breach in the spring when conditions permit. Until then a close eye <br />will be kept on the breach to ensure that it does not become larger. <br />The Refuse Ponds RP -1, RP -2/3, RP -4 and RP -5 were inaccessible due to snow. <br />The Raw Water Lagoon was frozen at the time of the inspection (Photo 4). The embankments were covered in <br />snow and showed no signs of instability. The pump was securely attached to the bridge. <br />PROCESSING WASTE/COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization; Placement: <br />Refuse piles 2/3/4 and 5A were inspected. Both of the piles were snow covered and there had been <br />minimal activity on the piles. The longwall was not running at the time of the inspection and had been in the <br />process of moving in the weeks previous to the inspection. The winter stockpile on 2/3/4 was completely covered <br />in snow. The access road to the bottom of the refuse piles and RP -1 was snowed in and not passable at the time of <br />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 was plowed and in good condition. Areas of the Haul Road had snow on it during the <br />inspection. The Haul Road had been plowed and was well maintained. The work to reduce the northeast and <br />northwest cuts of the CR-65/Haul Road intersection was complete. This was done to increase the visibility for <br />traffic and improve mine safety. <br />The access road to SDH -3 was covered in snow and had been plowed. The road is in good condition. <br />SUPPORT FACILITIES - Rule 4.04: <br />Small area exemptions (SAEs) that were inspected include: <br />- Nitrogen Plant #1 (Photo 5) <br />- RDH -3 <br />- Nitrogen Plant #2 <br />- Slot Storage Facility <br />- Haul Road Blister #5 <br />- The West Mains Vent Shaft <br />- The Water Storage Tank <br />- The Radio Tower <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 3 of 8 <br />