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COLORADO <br />Division of Reclar a:tion, <br />,. Minim and safety <br />Department of Natural Resources <br />1313 Sherman Street, Roorn 215 <br />Denver, CO 80203 <br />Mr. Jerry Nettleton <br />Seneca 11 Wast Minae <br />Seneca Caul Company 1L,I..,C <br />P.O. Box 670 <br />Hayden, CO 51630 <br />RE: Seneca II -W Mine; Seneca Coal Company <br />Third Quarter 2015 Sediment Pond Inspection and Annual Impoundment Report Review <br />Permit C-1982-057 <br />January 27, 2016 <br />Dear Mr. Nettleton, <br />The Colorado Division of Reclamation, Mining and Safety (CDRMS) received Seneca Coal Company's <br />third quarter 2015 sediment pond inspection reports on September 29, 2015. The Division finds the <br />above reference report to be in compliance with the following CDRMS regulation. <br />4.05.9(17) — Examined at least quarterly by a qualified person designated by the operator, for <br />appearance of structural weakness and other hazardous conditions. <br />4.05.9(17) — A copy of the report shall be submitted to the Division on a quarterly basis. <br />The following sediment ponds were inspected on the respective dates: Pond 005- 9/11/2015, Pond 006- <br />9/11/2015, Pond 009- 9/11/2015, Pond 015- 9/22/2015, Pond 016- 9/11/2015, Pond 017- 9/22/2015. <br />The Colorado Division of Reclamation, Mining and Safety (CDRMS) found the above reference report to <br />be in compliance with the following CDRMS Regulations, for Sediment Ponds 005, 006, 009, 015, 016, <br />ant) 17. SCC provided an annual impoundment inspection for stock tank T-2 as well. <br />4.059(14a) Inspections shall be made at least yearly until removal of the structure or release of the <br />performance bond. <br />4.059(14b) Provide to the Division a certified report that the impoundment has been constructed and/or <br />maintained as designed, and in accordance with the approved plan and applicable <br />regulations. <br />It was noted that only one maintenance item was identified and all impoundments were functioning as <br />designed at the time of the inspection. The report noted that additional bentonite was needed to fix <br />undercutting of the flume at Pond 017. This item does not affect the function of the pond structure. <br />1313 Sherman S'tree't, Roorn 215, Denver, CO 80203 P 303,8EiE 3567 F 303,832,8106 Ih't'tl:a:l/rnining.sta'te.co.0 s <br />John W. Hickenlool:aer, Governor I Mike King, Executive Director I Virginia Brannon, Director <br />