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October 5, 2016 C-1981-022/Elk Creek Mine LDS <br />Inspection Topic Summary <br />NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA=Not Applicable <br />N - Air Resource Protection <br />N - Availability of Records <br />N - Backfill & Grading <br />N - Excess Spoil and Dev. Waste <br />N - Explosives <br />N - Fish & Wildlife <br />N - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />N - Other <br />R - Processing Waste <br />N - Roads <br />R - Reclamation Success <br />R - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />N - Support Facilities On -site <br />N - Signs and Markers <br />N - Support Facilities Not On -site <br />N - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection by Leigh Simmons of the Division of Reclamation, Mining and Safety <br />(Division). Doug Smith of Oxbow Mining accompanied the inspection. The weather was clear, dry and fine. The <br />status of the Elk Creek Mine, as far as the Division is concerned, is "Active" however no coal is being mined and <br />all activity at the site is focused on the early stages of reclamation. <br />The demolition contractors, Demco, still had staff on -site. <br />A reclamation contractor, Tribble & Sons Construction, LLC, of Hotchkiss, was also still on -site, <br />completing reclamation work on USFS land. <br />GENERAL MINE PLAN COMPLIANCE: <br />No permitting actions are currently in progress. <br />PROCESSING WASTE/COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization; Placement: <br />No new waste had been generated. Both piles were stable and well vegetated, with no signs of erosion. <br />The previously repaired "hot -spot" on the West Valley Fill showed no evidence of re-emerging, and was well <br />vegetated. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />The loadout structure had been toppled and was being cut up into transportable sections. Most of the <br />concrete foundations had been demolished (including the footers for the conveyor supports). <br />The contract with Tribble & Sons had been extended to include an additional segment of road, as well as <br />the pads accessed by it. It is expected that the entire road segment from the de -watering hole pad all the way back <br />to the permanent two -track road will be reclaimed, as well as the five pads (dewater hole #1/#2, and GVB-LW-19- <br />08/08B/08C,- 18 -07B/07C/07D, -18-07 and-18-08). The work was a few days from completion at the time of the <br />inspection but appeared to be of high quality. <br />Number of Partial Inspection this Fiscal Year: 4 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 5 <br />