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July 26, 2016 C-1981-018/Deserado Mine CCW <br />2016 inspection report, settlement along the northern embankment had occurred. The repairs were conducted at <br />the time the pond was cleaned. All of the ponds in the system were impounding water at the time of the <br />inspection. Water was flowing into the Last Chance Pond. The pond was not at full capacity and there was no <br />discharge from the pond. The embankments of the ponds of the B -Seam Dewatering System were all stable at the <br />time of the inspection. There were no erosional features identified on the embankments. <br />The D -Seam Dewatering System was pumping at a rate of 300 gallons per minute. Only the lower pond of the <br />dewatering system was receiving water (Photo 4). The amount of iron in the water had decreased to the point <br />where the first two ponds in the system are not needed. The spillways were in good condition and the <br />embankments are stable. Some vegetation has started to grow in on the embankments of the ponds. The lower <br />pond was discharging at the time of the inspection. <br />The RP -2/3 main pond and south pond were dry during the inspection. The embankments of the ponds are well <br />vegetated and are stable. The primary and emergency spillways were clear of debris. The ponds are scheduled to <br />be cleaned in August. <br />The Raw Water Lagoon was in good condition. There were no indications of erosion on the embankments and the <br />vegetation at the site is well established. <br />PROCESSING WASTE/COAL MINE WASTE PILES ❑Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization; Placement: <br />Refuse was being placed on RP -5a during the inspection. There were no indications of instability at the <br />refuse piles. The slopes of refuse piles 2/3/4 and 5a had been re -surfaced to remove the large rills that had formed <br />on them during the spring. Repairs to the eastern ditch along RP -2/3 has been scheduled for August, at the same <br />time as when the RP -2/3 Pond is cleaned. <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 />The Haul road has been well maintained. There were no ruts or areas where water had ponded on the <br />road. The access roads to the Slot Storage and Raw Water Lagoon were in good condition, there were not any <br />large ruts. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />The D -Seam Portals were inspected. The portals were reclaimed in 1991. The vegetation is well <br />established and prevents the erosion of the reclaimed site. There were no rills or gullies identified. The reclaimed <br />access road leading into the D -Seam Portals was stable with well-established vegetation. <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 3 of 8 <br />